XBiotech(US:XBIT)2023-08-11 15:18Financial Performance - As of June 30, 2023, XBiotech reported an accumulated deficit of $40.3 million and net losses before income tax of $8.7 million and $12.5 million for the three months and six months ended June 30, 2023, respectively, compared to $14.3 million and $20.7 million for the same periods in 2022[82]. - The company does not expect to generate any revenues in the next year and anticipates significant and increasing operating losses as it advances its drug candidates[82]. - The company expects to continue incurring operating losses in the future and does not anticipate additional revenue from the clinical manufacturing agreement with Janssen[115]. Research and Development Expenses - Total research and development expenses for the three months and six months ended June 30, 2023 were $11.3 million and $17.5 million, respectively, compared to $10.4 million and $17.2 million for the same periods in 2022, reflecting an increase of 8% and 2%[103][104]. - Research and development expenses accounted for 85% and 86% of total operating expenses for the three months and six months ended June 30, 2023, up from 77% and 80% for the same periods in 2022[88]. - Salaries and related expenses in research and development increased by 43% to $6.2 million for the three months ended June 30, 2023, compared to $4.3 million for the same period in 2022[102]. - Clinical trials and sponsored research expenses increased by 114% to $1.1 million for the three months ended June 30, 2023, compared to $0.5 million for the same period in 2022[102]. - Share-based compensation in research and development decreased to $0.8 million for the three months ended June 30, 2023, down from $1.0 million for the same period in 2022[103]. General and Administrative Expenses - General and administrative expenses for the three months and six months ended June 30, 2023 were $2.0 million and $2.9 million, respectively, down from $3.0 million and $4.3 million for the same periods in 2022[90]. - General and administrative expenses decreased by $1.0 million to $2.0 million for the three months ended June 30, 2023, compared to $3.0 million for the same period in 2022, representing a 34% decrease[105]. - Salaries and related expenses decreased by 53% to $826 thousand for the three months ended June 30, 2023, compared to $1.748 million in the same period of 2022[105]. Revenue and Income - Manufacturing revenue was $0 for the three months and six months ended June 30, 2023, compared to $1.5 million and $2.0 million for the same periods in 2022, due to the completion of the Janssen Transaction Addendum[97][98]. - Interest income increased significantly to $2.509 million for the three months ended June 30, 2023, compared to $241 thousand in the same period of 2022[109]. - Total other income for the three months ended June 30, 2023, was $4.587 million, a substantial increase from a loss of $2.158 million in the same period of 2022[109]. - The company received $750 thousand in other income in June 2023 from a settlement agreement, contributing to the increase in total other income[109]. Cash Position - Cash and cash equivalents totaled approximately $143.4 million as of June 30, 2023, down from $225.8 million at June 30, 2022[111]. - Net cash used in operating activities was $13.805 million for the six months ended June 30, 2023, compared to $11.5 million for the same period in 2022, indicating increased cash outflow[111]. Workforce - As of June 30, 2023, XBiotech had 84 employees, indicating a stable workforce as it continues its research and development efforts[82]. Financial Strategy - The company has not engaged in any off-balance sheet activities since inception, indicating a conservative financial strategy[116].