XOMA(US:XOMA)2023-05-09 11:42Financial Performance - For the three months ended March 31, 2023, total revenues were $437,000, a decrease of $2.67 million compared to $3.1 million in the same period in 2022[239]. - The company reported a net loss of $9.8 million for the three months ended March 31, 2023, with an accumulated deficit of $1.2 billion as of the same date[233]. - Cash and cash equivalents decreased to $44.3 million as of March 31, 2023, down from $57.8 million at the end of 2022, reflecting a net decrease of $13.5 million[248]. - Net cash used in operating activities for the three months ended March 31, 2023, was $4.9 million, compared to $1.0 million for the same period in 2022[250]. - The company incurred arbitration settlement costs of $4.1 million during the three months ended March 31, 2023[245]. - Net cash used in financing activities for the three months ended March 31, 2023, was $1.4 million, primarily due to dividend payments on Series A and Series B Preferred Stock[252]. Expenses - Research and development (R&D) expenses were $54,000 for the three months ended March 31, 2023, consistent with $56,000 for the same period in 2022[242]. - General and administrative (G&A) expenses increased to $6.2 million for the three months ended March 31, 2023, up from $5.1 million in the same period in 2022, primarily due to increased stock-based compensation and consulting costs[244]. - The company anticipates an increase in operating expenses in 2023 due to a higher volume of acquisition targets being evaluated[259]. Investments and Acquisitions - The company entered into a commercial payment purchase agreement (CPPA) in March 2023, acquiring a mid-single digit percentage payment stream on IXINITY sales, with an upfront payment of $9.6 million[234]. - Net cash used in investing activities was $7.2 million for the three months ended March 31, 2023, primarily due to the $9.6 million payment for the acquisition of payment rights[251]. - The company expects to continue deploying capital toward acquiring rights to potential future milestone and royalty streams in the near and long term[261]. - Potential future milestone payments and legal fees under licensing agreements could aggregate up to $6.3 million, contingent on the achievement of specific milestones[264]. Cash Management - The company had approximately $4.5 million of cash and cash equivalents in accounts with SVB at the time of its closure on March 10, 2023, but regained full access to $3.7 million by March 31, 2023[254]. - Investment income increased to $381,000 for the three months ended March 31, 2023, compared to $15,000 in the same period in 2022, due to higher market interest rates[246]. Preferred Stock and Dividends - Holders of Series A Preferred Stock are entitled to cumulative cash dividends at a rate of 8.625%, while Series B Preferred Stock dividends are at 8.375%[265]. - The company incurred a cost of $4.1 million in April 2023 due to an adverse arbitration decision regarding a license agreement[258]. - The company may seek additional capital through its 2018 Common Stock ATM Agreement or 2021 Series B Preferred Stock ATM Agreement[255]. Lease and Future Outlook - The amended headquarters lease is set to expire in July 2023, with no expected material incremental costs associated with future leases[260].