OmniAb(OABI) - 2024 Q3 - Quarterly Report

Revenue Performance - Total revenue for the three months ended September 30, 2024, was $4.172 million, a decrease of 24$5.477 million in the same period of 2023[153]. - License and milestone revenue for the nine months ended September 30, 2024, was $5.216 million, down 73$18.986 million in the prior year, primarily due to the recognition of significant milestones in the previous period[155]. - Service revenue for the three months ended September 30, 2024, was $2.479 million, an 18$3.016 million in the same period of 2023[153]. - Royalty revenue for the nine months ended September 30, 2024, was $955,000, a 3$931,000 in the same period of 2023[155]. Operating Expenses - The company reported total operating expenses of $23.936 million for the three months ended September 30, 2024, a decrease of 7$25.792 million in the same period of 2023[156]. - Research and development expenses for the three months ended September 30, 2024, were $13.318 million, a slight decrease of 4$13.867 million in the same period of 2023[156]. - Total operating expenses decreased by $3,346,000 or 4$74,209,000 for the nine months ended September 30, 2024, compared to $77,555,000 in 2023[161]. - Research and development expenses for the nine months ended September 30, 2024, were$41,804,000, a slight increase of $45,000 or 0$41,759,000 for the same period in 2023[161]. Net Loss and Cash Flow - The net loss for the nine months ended September 30, 2024, was $48,965,000, an increase of$12,399,000 or 34% from a net loss of $36,566,000 in 2023[164]. - Cash used in operating activities for the nine months ended September 30, 2024, was$35,792,000, a decrease of $47,260,000 compared to cash provided of$11,468,000 in 2023[172]. - Cash provided by investing activities for the nine months ended September 30, 2024, was $37,499,000, an increase of$60,605,000 compared to cash used of $23,106,000 in 2023[172]. - As of September 30, 2024, the company had cash, cash equivalents, and short-term investments totaling$59,400,000, sufficient to support operations for at least the next 12 months[167]. Future Capital and Investments - The company anticipates raising additional capital in the future to expand its business and pursue strategic investments, with potential proceeds of up to $218.6 million from warrant exercises, contingent on market conditions[170][169]. - The company entered into an Open Market Sale Agreement to sell up to$100,000,000 in common stock through an "at the market" offerings program[169]. Partnerships and Programs - As of September 30, 2024, the company had 86 active partners and 352 active programs utilizing the OmniAb technology platform, an increase from 77 partners and 325 programs as of December 31, 2023[142][149]. - The company had 33 active clinical programs as of September 30, 2024, an increase from 32 programs as of December 31, 2023[149][152]. - The company has three approved products from its partners, remaining unchanged since December 31, 2023[149][152]. Royalty and Compensation - The royalty rates for antibody discovery contracts are currently in the low- to mid-single digits, with the royalty term typically linked to the composition-of-matter patents filed by partners[146]. - Research and development expenses included $16.4 million in share-based compensation and$16.0 million in depreciation and amortization for the nine months ended September 30, 2024[173]. Tax Rate - The effective tax rate for the nine months ended September 30, 2024, was (12.9)%, compared to (17.5)% for the same period in 2023[164].