科特迪瓦当地媒体KOACI报道，创新科技品牌TECNO与人工智能领域权威机构DXOMARK在重庆 联合揭幕了全球首个全自动化成像实验室——TECNO DXOMARK联合成像实验室。 TECNO影像质量实验室总监周凡一补充道："作为全球首个实施Camera V6标准的实验室，此次合 作将彻底改变影像的客观评估方式。它极大加速了我们的创新进程，为全球用户带来更真实、更包容的 体验。" 该高级实验室率先整合了DXOMARK Camera V6先进的自动化测试解决方案，为智能手机成像树立 了新的科学基准。通过自动化技术，它加速了全球向更包容、更精准、更规范的摄影技术转型。 （原标题：TECNO与DXOMARK在华联合推出全球首个全自动化成像实验室） 在揭幕仪式上，DXOMARK首席执行官弗雷德里克·吉夏尔表示： "TECNO DXOMARK联合成像实 验室体现了我们共同的目标，即把智能手机的成像创新和性能提升到一个新的高度。通过将我们的科学 专业知识与先进的自动化实验室能力相结合，我们为TECNO提供了一种工具，确保其开发流程的核心 环节高效、精准且全面。 ...

Exhibit 99.1 XOMA Royalty Reports Second Quarter and Year to Date 2025 Financial Results and Highlights Recent Business Achievements Business development: Purchased mezagitamab royalty and milestone rights held by BioInvent International and will secure royalty economic interests in two early-stage partnered assets through XOMA Royalty's recently announced acquisition of LAVA Therapeutics. Company acquisitions: Announced XOMA Royalty's acquisitions of Turnstone Biologics, LAVA Therapeutics, and HilleVax; ac ...

Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the transition period from __________to__________ Commission File Number: 001-39801 XOMA Royalty Corporation UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the quarterly period ended June 30, 2025 OR Securities registered pursuant to Section 12(b) of the Act: | Title of each class: | T ...

Financial Performance - For the three months ended March 31, 2025, the company generated net income of $2.4 million, compared to a net loss of $8.6 million for the same period in 2024[245]. - Total income and revenues for the three months ended March 31, 2025, were $15.9 million, an increase of $14.4 million from $1.5 million in the same period in 2024[252]. - The company earned a $3.0 million milestone payment from Takeda for the first patient dosed in its Phase 3 clinical trial of mezagitamab (TAK-079)[248]. - Income from purchased receivables under the EIR method for the three months ended March 31, 2025, included estimated income of $5.8 million related to sales of VABYSMO[253]. - Total other (expense) income, net for Q1 2025 was $(95,000), a decrease of $2.1 million compared to $1.96 million in Q1 2024[262]. - Investment income decreased by $0.8 million to $0.9 million in Q1 2025 due to decreased balances and market interest rates[262]. - Net cash provided by operating activities was $2.2 million in Q1 2025, an increase of $7.1 million compared to $(4.9 million) in Q1 2024[265]. - Total cash receipts for Q1 2025 were $17.96 million, up from $9.77 million in Q1 2024, driven by increased royalties from VABYSMO[267]. Expenses - R&D expenses for the three months ended March 31, 2025, were $1.3 million, a significant increase from $33 thousand in the same period in 2024, primarily due to licensing fees related to the Takeda collaboration[258]. - G&A expenses decreased to $8.1 million for the three months ended March 31, 2025, from $8.5 million in the same period in 2024, mainly due to reduced stock compensation costs[259]. - Interest expense for the three months ended March 31, 2025, was $3.5 million, slightly lower than $3.6 million in the same period in 2024[261]. - The company expects to incur $0.4 million in incremental costs related to its new headquarters lease in Emeryville, California[272]. Cash Position - Cash and cash equivalents as of March 31, 2025, were $90.3 million, down $11.4 million from $101.7 million as of December 31, 2024[264]. - The outstanding principal balance under the Blue Owl Loan Agreement was $113.6 million as of March 31, 2025, with an annual interest rate of 9.875%[274]. Future Expectations - The company expects to receive up to $270 million in upfront and milestone payments from the Kinnate acquisition, with future royalty payments ranging from low single digits to mid-teens on commercial sales[246]. - The company expects future revenue and income to be driven by milestone and royalty payments associated with its portfolio of therapeutic candidates[244]. Accumulated Deficit and Tax Benefits - The company had an accumulated deficit of $1.2 billion as of March 31, 2025, consistent with the previous year[245]. - The company has $5.9 million in gross unrecognized tax benefits, which will not impact the effective tax rate due to a full valuation allowance[263]. Stock Repurchase Program - The stock repurchase program authorized up to $50 million, with $0.6 million spent to repurchase 26,488 shares as of March 31, 2025[273].

Financial Performance - XOMA Royalty reported total income and revenues of $15.9 million for Q1 2025, a significant increase from $1.5 million in Q1 2024[8] - The company achieved a net income of $2.4 million in Q1 2025, compared to a net loss of $8.6 million in Q1 2024[14] - Total income and revenues for Q1 2025 reached $15,912,000, a significant increase from $1,490,000 in Q1 2024, representing a growth of approximately 964%[22] - Net income for Q1 2025 was $2,367,000, compared to a net loss of $8,595,000 in Q1 2024, marking a turnaround in profitability[22] - Basic net income per share for Q1 2025 was $0.06, compared to a loss of $0.86 per share in Q1 2024[22] Cash Flow and Liquidity - Cash receipts for Q1 2025 totaled $18.0 million, including $13.4 million from royalties and commercial payments, and $4.6 million from milestones and fees[15] - The company had cash and cash equivalents of $95.0 million as of March 31, 2025, down from $106.4 million at the end of 2024[15] - Cash and cash equivalents decreased to $90,265,000 as of March 31, 2025, down from $101,654,000 at the end of 2024[24] - Net cash provided by operating activities for Q1 2025 was $2,198,000, a recovery from a cash outflow of $4,947,000 in Q1 2024[26] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $11,389,000 for Q1 2025, compared to a decrease of $17,149,000 in Q1 2024[26] Expenses - Research and Development expenses rose to $1.3 million in Q1 2025, up from $33,000 in Q1 2024, primarily due to licensing fees related to Takeda's Phase 3 milestone[9] - General and Administrative expenses decreased to $8.1 million in Q1 2025 from $8.5 million in Q1 2024, mainly due to lower stock compensation costs[10] - Research and development expenses increased to $1,293,000 in Q1 2025 from $33,000 in Q1 2024, indicating a focus on innovation and product development[22] - Payments of consideration under RPAs, AAAs, and CPPAs amounted to $8,000,000 in Q1 2025, compared to $15,000,000 in Q1 2024, indicating a reduction in cash outflows for these agreements[26] Strategic Activities - XOMA Royalty acquired a royalty interest in Castle Creek Biosciences' D-Fi (FCX-007), contributing $5 million to a $75 million financing transaction[4] - The company received a $4.0 million milestone payment related to Day One Biopharmaceuticals' Marketing Authorization Application filing with the EMA[8] - XOMA Royalty initiated share repurchase activity, deploying $0.5 million to repurchase 25,828 shares of common stock[15] - XOMA Royalty anticipates continued growth in cash flow generation from accelerating royalty receipts and a robust pipeline of partnered programs[3] Balance Sheet - Total assets decreased to $212,750,000 as of March 31, 2025, compared to $221,277,000 at the end of 2024[24] - Total liabilities decreased to $128,121,000 as of March 31, 2025, down from $139,356,000 at the end of 2024, reflecting improved financial health[24]

Business Model and Revenue Streams - XOMA's royalty aggregator business model was implemented in 2017, focusing on early to mid-stage clinical assets primarily in Phase 1 and 2 development [26]. - The company expects future revenue to be based on milestone and royalty payments associated with its portfolio, which includes assets with long market exclusivity [26]. - In 2024, XOMA received commercial payments totaling $16.9 million from Roche's VABYSMO and $1.6 million from IXINITY [36][44]. - The company made an upfront payment of $6.0 million for VABYSMO and is eligible for 0.5% of future net sales for ten years [35]. - XOMA acquired rights to OJEMDA with an upfront payment of $13.5 million, with potential milestone payments of up to $54.0 million and high-single-digit royalties on sales [37]. - In October 2023, XOMA earned a $5.0 million milestone payment related to the FDA's acceptance of Day One's NDA for tovorafenib [38]. - The company is eligible to receive mid-single-digit royalties on sales of OJEMDA, earning $2.7 million in royalties in 2024 [39]. - XOMA entered into agreements for MIPLYFFA with potential milestone payments of up to $52.5 million and low single-digit royalty payments [40]. - The company paid an upfront payment of $5.0 million for the LadRx Agreements and earned a net milestone payment of $2.2 million upon FDA approval of MIPLYFFA [42]. - In April 2024, the company entered into the Daré Royalty Purchase Agreements, paying $22.0 million for 100% of remaining royalties related to XACIATO, with royalties ranging from low to high-single-digits [45]. - The company acquired an economic interest in DSUVIA for $8.0 million, retaining a 15% royalty on commercial sales, while receiving $0.1 million in commercial payments in 2024 [49][50]. - In November 2024, the company acquired Pulmokine for $20.0 million, gaining rights to net royalties ranging from low to mid-single-digits on commercial sales of seralutinib [51]. - The company acquired Kinnate in April 2024, paying $2.5879 per share and obtaining rights to IPR&D assets related to KIN-3248, currently in Phase 1 clinical study [52][53]. - In October 2024, the company entered into the Twist Royalty Purchase Agreement for $15.0 million, eligible to receive up to $0.5 billion in milestone payments and low-single-digit royalties on future sales [55]. Financial Performance and Risks - The company generated net losses of $13.8 million and negative cash flows from operations of $13.7 million for the year ended December 31, 2024, with an accumulated deficit of $1.2 billion [131]. - The company has financed operations primarily through the sale of equity securities, debt, and royalty interests, and payments received under collaboration and licensing arrangements [132]. - The company may need to raise additional funds to acquire milestone and royalty interests, with a risk of not obtaining sufficient funds on acceptable terms [137]. - The company has an obligation to pay cumulative cash dividends at the rate of 8.625% on Series A Preferred Stock and 8.375% on Series B Preferred Stock, which may limit borrowing capabilities [141][142]. - The company recorded credit losses of $7.9 million on purchased receivables under the Talphera CPPA, indicating no probable payments to be received as of December 31, 2024 [50]. - The company recorded credit losses of $14.0 million on purchased receivables under the Agenus RPA, determining no probable payments to be received as of September 30, 2024 [59]. - Significant reductions in potential milestone or royalty payments compared to expectations could materially adversely affect the company's financial condition and results of operations [149]. - A large percentage of the calculated net present value of the company's portfolio is represented by a limited number of products, and the failure of any one product could have a material adverse effect on financial conditions [150]. Competition and Market Challenges - The company faces significant competition in the biotechnology and pharmaceutical industries, including from companies with greater financial and technical resources [83]. - The company’s royalty aggregator model is challenged by competitors seeking to aggregate royalties or provide alternative financing, potentially impacting acquisition opportunities [83]. - Regulatory changes in the U.S. and EU are increasingly limiting or regulating the pricing of medical products, which could result in lower royalties for the company [87]. - The biopharmaceutical industry is highly competitive, and new products or improvements could render existing products obsolete, affecting potential royalty revenues [118]. - Competition from generic drugs may adversely affect sales of products, impacting potential milestones and royalties [185]. - New products and technologies from competitors may render the company's product candidates obsolete or noncompetitive [189]. - Positive developments in competing products may adversely impact the company's potential revenue from development milestones and royalties [191]. Regulatory and Legal Risks - The company is subject to various government regulations that could materially affect its operations and financial condition if compliance is not maintained [84]. - The company’s royalty aggregator strategy may require registration as an "investment company" under the Investment Company Act of 1940, which could impose significant operational changes and costs [125][126]. - The regulatory approval process for product candidates is lengthy and expensive, and there is no guarantee that approvals will be obtained in a timely manner or at all [159]. - The timing of clinical trials may be subject to significant delays due to various factors, including patient enrollment challenges and regulatory requirements [166]. - The company relies on patent protection and other legal means to safeguard proprietary technology, but these protections may be limited [202]. - Ongoing litigation regarding intellectual property rights can be costly and may divert management's attention from other business aspects [216]. - An adverse arbitration decision resulted in a $4.1 million payment for costs incurred by a licensee, impacting financial condition [217]. - Uncertainties from litigation and arbitration could materially affect the company's competitive position and market perception [219]. Acquisitions and Strategic Growth - The company’s strategy includes expanding its portfolio through acquisitions to diversify across therapeutic areas and development stages [27]. - The company may seek additional equity or debt financing to facilitate acquisitions, which could dilute existing stockholders and affect the market price of its common stock [106]. - The company intends to expand market opportunities by acquiring securities from other companies, which may face risks and uncertainties that could adversely affect financial performance [107]. - Regulatory challenges may block or delay acquisitions, and failure to integrate acquired employees could lead to retention risks [108]. - The company may not realize expected benefits from acquisitions, such as those of Kinnate and Pulmokine, due to integration challenges and operational disruptions [105]. - Acquisitions may expose the company to credit risks, particularly in the event of defaults or bankruptcies of licensors or licensees, potentially affecting future royalty and milestone payments [104]. - The company faces significant costs and reputational risks associated with competition for future asset acquisitions, which may increase prices and reduce potential targets [103]. Dependency on Third Parties - The company relies on third parties achieving specified development milestones for potential royalty payments, with a significant portion of net present value tied to a limited number of products [95]. - The company is dependent on third parties for the enforcement of rights related to acquired royalties, and their failure could negatively impact financial results [109]. - The company relies heavily on third-party collaborations, making it vulnerable to disputes and terminations that could reduce financial resources [220]. - Future potential royalties and milestone payments are at risk due to the reliance on the performance of licensees and collaborators [223]. - The company may face challenges in finding new partners to continue product development and commercialization after a termination of agreements [221]. Stock and Shareholder Matters - In January 2024, the Board authorized a stock repurchase program allowing the purchase of up to $50.0 million of common stock through January 2027 [78]. - As of December 31, 2024, the company had purchased a total of 660 shares of common stock for $13,000 under the stock repurchase plan [81]. - As of December 31, 2024, the company had 984,000 shares of Series A Preferred Stock with a liquidation preference of $25.00 per share, and 1,600,000 depositary shares of Series B Preferred Stock with a liquidation preference of $25,000 per share [146].

Financial Performance - Total cash receipts for 2024 amounted to $46.3 million, including $20.0 million in royalties and commercial payments[17] - The company recorded total income and revenues of $28.5 million for the full year 2024, a significant increase from $4.8 million in 2023[7] - Total income and revenues for 2024 reached $28,487,000, a significant increase from $4,758,000 in 2023, representing a growth of approximately 498%[24] - The company reported a significant increase in revenue, reaching $1.2 billion, representing a 15% year-over-year growth[29] Expenses and Losses - R&D expenses increased to $2.9 million for the full year 2024, up from $0.1 million in 2023, primarily due to clinical trial costs related to KIN-3248[9] - G&A expenses for the full year 2024 were $34.5 million, compared to $25.6 million in 2023, largely due to acquisition-related costs[10] - Net loss for the full year 2024 was $13.8 million, a reduction from a net loss of $40.8 million in 2023[16] - The net loss for 2024 was $13,821,000, a reduction from a net loss of $40,831,000 in 2023, indicating an improvement of about 66%[24] - Total operating expenses rose to $68,463,000 in 2024, up from $46,606,000 in 2023, marking an increase of approximately 47%[24] Cash and Assets - XOMA Royalty had cash and cash equivalents of $106.4 million as of December 31, 2024, down from $159.6 million in 2023[17] - Cash and cash equivalents decreased to $101,654,000 in 2024 from $153,290,000 in 2023, a decline of about 34%[26] - Total assets decreased to $221,277,000 in 2024 from $234,301,000 in 2023, a decline of about 6%[26] Acquisitions and Portfolio Growth - XOMA Royalty doubled its royalty and milestone portfolio to over 120 assets through five transactions in 2024[1] - The company completed two whole company acquisitions in 2024, adding approximately $7.8 million in cash and five assets to its portfolio[3] - The company reported a gain of $19,316,000 from the acquisition of Kinnate, contributing positively to the financial results[24] Credit Losses - Credit losses totaled $30.9 million for the full year 2024, significantly higher than $1.6 million in 2023[12] - The company recognized $30,904,000 in credit losses on purchased receivables in 2024, compared to $1,575,000 in 2023, indicating a significant increase in credit risk[24] Future Outlook and Strategies - The company anticipates substantial milestone and royalty proceeds from its portfolio of partnered programs and licensed technologies over time[19] - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 10% to 12%[29] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[29] - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[29] - Market expansion efforts are underway in Europe, targeting a 20% increase in market share by the end of the year[29] - The company is considering strategic acquisitions to bolster its product offerings and market presence[29] - A new marketing strategy has been implemented, aiming to increase brand awareness by 30% within the next six months[29] - The company plans to enhance its customer support services, allocating an additional $10 million to improve response times and service quality[29] Regulatory Approvals - FDA approvals were received for Day One's OJEMDA™ and Zevra's MIPLYFFA™, contributing to milestone payments of $9.0 million and $8.1 million, respectively[4] User Growth - User data showed a total of 5 million active users, up from 4 million in the previous quarter, indicating a 25% increase[29] Gross Margin - The gross margin improved to 45%, up from 42% in the previous quarter, reflecting better cost management[29]

Financial Performance - XOMA Royalty reported total income and revenues of $7.2 million for Q3 2024, a significant increase from $0.8 million in Q3 2023[6] - The company recorded a net loss of $17.2 million in Q3 2024, compared to a net loss of $5.5 million in Q3 2023, primarily due to a $14.0 million non-cash impairment charge[13] - The company reported a net loss of $9,853 thousand for the three months ended September 30, 2024, compared to a net loss of $20,722 thousand for the same period in 2023, indicating an improvement of approximately 52.4%[24] - The company recognized a gain of $19,316 thousand on the acquisition of Kinnate, contributing positively to the financial results[24] Cash Flow and Assets - Cash receipts totaled $9.9 million in Q3 2024, and $42.3 million for the first nine months of 2024[2] - On September 30, 2024, XOMA Royalty had cash and cash equivalents of $146.8 million, down from $159.6 million at the end of 2023[14] - Cash, cash equivalents, and restricted cash decreased from $159,550 thousand at the beginning of the period to $146,816 thousand at the end of the period, a decrease of about 8.3%[24] - Total current assets decreased from $169,313 thousand as of December 31, 2023, to $159,021 thousand as of September 30, 2024, representing a decline of approximately 6.4%[22] Expenses - General and administrative expenses increased to $8.0 million in Q3 2024 from $6.4 million in Q3 2023, largely due to costs associated with the Kinnate acquisition[9] - Research and development expenses were $0.8 million in Q3 2024, up from $25,000 in Q3 2023, reflecting costs related to the KIN-3248 clinical trial[7] - Total interest expense for Q3 2024 was $3.5 million, related to the Blue Owl Loan established in December 2023[11] - Stock-based compensation expense increased from $6,450 thousand in the nine months ended September 30, 2023, to $8,136 thousand in the same period of 2024, an increase of approximately 26.1%[24] Liabilities and Equity - Total liabilities decreased from $145,580 thousand as of December 31, 2023, to $138,531 thousand as of September 30, 2024, reflecting a reduction of approximately 4.8%[22] - Total stockholders' equity decreased from $88,721 thousand as of December 31, 2023, to $84,809 thousand as of September 30, 2024, a decline of about 4.5%[22] Acquisitions and Approvals - XOMA Royalty acquired a 50% economic interest in TWIST Bioscience's portfolio of over 60 licensed early-stage assets[2] - The FDA approved Zevra's MIPLYFFA™ (arimoclomol), adding to XOMA's commercial royalty portfolio[4] - Cash flows from investing activities included net cash acquired in the Kinnate acquisition amounting to $18,926 thousand[24] Future Outlook - The company anticipates significant future developments, including ongoing clinical trials and potential regulatory approvals for its partnered programs[16] - The company made principal payments of $6,902 thousand on debt during the financing activities[24]

Financial Performance - XOMA reported a net loss of $17.2 million for the three months ended September 30, 2024, and an accumulated deficit of $1.2 billion as of the same date [285]. - Total income and revenues for the three months ended September 30, 2024, were $7.2 million, a significant increase of $6.4 million compared to $830,000 in the same period of 2023 [297]. - For the nine months ended September 30, 2024, total income and revenues were $19.8 million, up from $2.9 million in the same period of 2023, reflecting a change of $16.8 million [297]. - The accumulated deficit as of September 30, 2024, was $1.2 billion, indicating significant operating losses since inception [321]. Revenue Sources - Income from purchased receivables for the three months ended September 30, 2024, included $5.4 million related to sales of VABYSMO [298]. - Revenue from contracts with customers for the nine months ended September 30, 2024, included a milestone payment of $5.0 million from Rezolute [301]. - XOMA expects future income related to VABYSMO to increase as sales are anticipated to grow [300]. Expenses - R&D expenses for Q3 2024 were $0.8 million, a significant increase from $25,000 in Q3 2023, primarily due to clinical trial costs related to KIN-3248 [303]. - G&A expenses for Q3 2024 were $8.0 million, up from $6.4 million in Q3 2023, with $1.4 million attributed to costs incurred from the Kinnate acquisition [304]. - G&A expenses for the nine months ended September 30, 2024, totaled $27.5 million, compared to $18.3 million in the same period of 2023, reflecting a $9.2 million increase mainly due to Kinnate acquisition costs [305]. Acquisitions and Agreements - XOMA entered into a royalty purchase agreement with Twist Bioscience for a $15.0 million upfront payment, potentially receiving up to $0.5 billion in milestone payments [286]. - The company recognized a $2.2 million milestone payment upon FDA approval of MIPLYFFA, with eligibility for mid-single-digit royalties on net sales [289]. - A $19.3 million gain was recognized on the acquisition of Kinnate during the nine months ended September 30, 2024, due to the fair value of net assets acquired exceeding the purchase consideration [309]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024, were $142.1 million, down from $153.3 million as of December 31, 2023, reflecting a decrease of $11.2 million [317]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $10.8 million, a decrease of $3.4 million compared to the same period in 2023 [318]. - Net cash provided by investing activities was $8.2 million for the nine months ended September 30, 2024, compared to a net cash used of $6.2 million in the same period of 2023, marking a $14.4 million change [319]. Future Obligations and Liabilities - The company has authorized a stock repurchase program allowing for the purchase of up to $50.0 million of common stock through January 2027, with $13,000 spent on repurchases as of September 30, 2024 [328]. - Future R&D and G&A expenditures related to the Kinnate acquisition are expected to be funded by cash received upon the merger's close [327]. - The company has recorded $4.0 million of contingent consideration related to RPAs, AAAs, and CPPAs on its balance sheets as of September 30, 2024 [332]. - The company expects to make additional milestone payments of up to $6.0 million under the Affitech CPPA and $1.0 million under the LadRx Agreements [332]. - The company recognized a $1.0 million liability for a commercial milestone payment following FDA approval of MIPLYFFA on September 20, 2024 [339]. - Based on reported 2024 sales of VABYSMO through September 30, 2024, the company recognized $3.0 million in liabilities for sales-based milestone payments [340]. - Holders of Series A Preferred Stock are entitled to cumulative cash dividends at a rate of 8.625% per year, while Series B Depositary Shares have a rate of 8.375% per year [335]. - The company is obligated to pay an additional $11.0 million for each successive $22.0 million received under the Daré RPAs after achieving a return threshold of $88.0 million [338]. - The company has potential future milestone payments aggregating up to $6.3 million that have not been recorded on the balance sheet as of September 30, 2024 [334].

Financial Performance - XOMA generated net income of $16.0 million and $7.4 million for the three and six months ended June 30, 2024, respectively, with an accumulated deficit of $1.2 billion as of June 30, 2024[283]. - Total income and revenues for the three months ended June 30, 2024, were $11.1 million, a significant increase of $9.4 million compared to $1.7 million in the same period of 2023[313]. - Investment income increased by $1.2 million and $2.5 million for the three and six months ended June 30, 2024 compared to the same periods in 2023, respectively, due to higher balances and higher market interest rates[325]. - Net cash used in operating activities decreased by $9.9 million for the six months ended June 30, 2024 compared to the same period in 2023, primarily driven by an increase of $13.6 million in operating cash receipts from partners and licensees[333]. - As of June 30, 2024, the accumulated deficit was $1.2 billion, with cash and cash equivalents of $143.9 million and restricted cash of $6.0 million[336]. Acquisitions and Agreements - The Kinnate acquisition was completed on April 3, 2024, with a cash payment of $2.5879 per share and potential milestone payments totaling $30.5 million[284][285]. - The company recognized a $19.3 million gain on the acquisition of Kinnate during the three and six months ended June 30, 2024, due to the fair value of net assets acquired exceeding the total purchase consideration[322]. - The company entered into the Kinnate CVR Agreement on April 3, 2024, with a potential obligation to pay up to $30.5 million upon achieving specified milestones related to the sale of exarafenib[353]. - The company acquired rights to royalty and milestone payments related to XACIATO, OVAPRENE, and Sildenafil Cream on April 29, 2024, with an additional obligation of $11.0 million for every $22.0 million received after reaching a return threshold of $88.0 million[354]. Revenue Sources - XOMA earned a $9.0 million milestone payment upon FDA approval of Day One's NDA for OJEMDA and is eligible for mid-single-digit royalties on net sales[286]. - Day One sold its priority review voucher for $108.0 million, resulting in an $8.1 million payment to XOMA[287]. - XOMA received $7.4 million in commercial payments from Roche for sales of VABYSMO during the last six months of 2023[291]. - A $5.0 million milestone payment was earned by XOMA when Rezolute dosed the first patient in its Phase 3 trial of RZ358[296]. - Revenue from contracts with customers included a $5.0 million milestone payment from a license agreement with Rezolute for the three months ended June 30, 2024[316]. - The company expects income from VABYSMO and royalties on OJEMDA to increase in future periods as sales are anticipated to grow[315]. Expenses - R&D expenses increased to $1.2 million for the three months ended June 30, 2024, compared to $39,000 in the same period of 2023, primarily due to clinical trial costs related to KIN-3248[318]. - G&A expenses for the three months ended June 30, 2024, were $11.0 million, up from $5.8 million in the same period of 2023, largely due to $5.4 million in costs associated with the Kinnate acquisition[319]. - Interest expense for the three months ended June 30, 2024, was $3.4 million, representing interest incurred on the Blue Owl Loan since December 31, 2023[324]. Impairments and Charges - An impairment charge of $9.0 million was recorded due to Bayer's termination of its license agreement with Aronora[295]. - The company recorded a $9.0 million impairment related to the Aronora royalty purchase agreement for the three and six months ended June 30, 2024[320]. Cash Flow and Financing - Net cash used in investing activities for the six months ended June 30, 2024 was $1.4 million, primarily consisting of a $22.0 million payment to Daré for the acquisition of payment rights[334]. - Net cash used in financing activities for the six months ended June 30, 2024 was $6.1 million, primarily consisting of principal payments of $3.6 million on the Blue Owl Loan and dividends of $2.8 million on Series A and Series B Preferred Stock[335]. - The Board authorized a stock repurchase program allowing the company to purchase up to $50.0 million of its common stock through January 2027, with a total of 660 shares purchased for $13,000 as of June 30, 2024[343]. - Under the Blue Owl Loan Agreement, the outstanding principal balance will bear interest at an annual rate of 9.875%[344]. Future Expectations - XOMA's royalty aggregator business model focuses on early to mid-stage clinical assets with significant commercial sales potential[281]. - The company expects most future revenue to be based on milestone and royalty payments from acquired programs[282]. - The carrying value of receivables for VABYSMO is classified as a current receivable, indicating probable and reliably estimable payments to be received in the next twelve months[304]. - Sublease income increased by $67,000 for the three and six months ended June 30, 2024 compared to the same periods in 2023 due to the lease assignment agreement acquired under the Kinnate acquisition[328]. - The company has potential sales-based milestone payments that may become due under agreements with Aronora and Kuros, with contingencies aggregating up to $6.3 million not recorded on the balance sheet as of June 30, 2024[350].