Special Note Regarding Forward-Looking Statements This report contains forward-looking statements based on current expectations and projections, which are subject to risks and uncertainties that could cause actual results to differ materially - This report contains forward-looking statements based on current expectations and projections, which are subject to risks and uncertainties that could cause actual results to differ materially9 - Key factors influencing future performance include the effects of the COVID-19 pandemic, the ability to execute R&D plans, success and timing of clinical trials, regulatory approvals, and the ability to accurately estimate expenses and capital requirements1012 - The company explicitly states it does not undertake any obligation to update, republish, or revise forward-looking statements to reflect future events or unanticipated occurrences12 PART I. Financial Information This section presents the company's unaudited interim financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures Item 1. Financial Statements This section presents Xencor, Inc.'s unaudited interim financial statements for the quarter ended March 31, 2022, including balance sheets, statements of comprehensive income (loss), stockholders' equity, and cash flows, along with detailed notes on significant accounting policies, fair value measurements, and collaboration agreements Balance Sheets This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity as of March 31, 2022, and December 31, 2021 Balance Sheet Highlights (in thousands) | Metric | March 31, 2022 | December 31, 2021 | | :-------------------------------- | :------------- | :---------------- | | Total Assets | $857,922 | $838,211 | | Cash and cash equivalents | $78,267 | $143,480 | | Marketable debt securities (current) | $278,058 | $153,767 | | Accounts receivable | $88,204 | $66,384 | | Total Liabilities | $94,899 | $104,707 | | Total Stockholders' Equity | $763,023 | $733,504 | - Total assets increased by $19.7 million, primarily driven by an increase in marketable debt securities and accounts receivable, while cash and cash equivalents decreased by $65.2 million16 - Total liabilities decreased by $9.8 million, and total stockholders' equity increased by $29.5 million16 Statements of Comprehensive Income (Loss) This section outlines the company's financial performance, presenting revenues, expenses, and net income or loss for the three months ended March 31, 2022, and 2021 Comprehensive Income (Loss) Highlights (in thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue (Collaborations, milestones, and royalties) | $85,495 | $33,965 | | Research and development expenses | $47,756 | $41,411 | | General and administrative expenses | $11,273 | $8,226 | | Income (loss) from operations | $26,466 | $(15,672) | | Net income (loss) | $23,594 | $(2,487) | | Basic net income (loss) per common share | $0.40 | $(0.04) | | Diluted net income (loss) per common share | $0.39 | $(0.04) | - The company reported a net income of $23.6 million for Q1 2022, a significant improvement from a net loss of $2.5 million in Q1 2021, primarily due to a substantial increase in revenue19 - Total revenue increased by $51.5 million, while operating expenses increased by $9.4 million19 Statements of Stockholders' Equity This section details changes in the company's equity, including comprehensive income, stock issuances, and stock-based compensation, for the three months ended March 31, 2022 Stockholders' Equity Changes (in thousands) | Item | Three Months Ended March 31, 2022 | | :------------------------------------------ | :-------------------------------- | | Balance, December 31, 2021 | $733,504 | | Issuance of common stock upon exercise of stock awards | $731 | | Comprehensive income (loss) | $17,983 | | Stock-based compensation | $10,805 | | Balance, March 31, 2022 | $763,023 | - Total stockholders' equity increased by $29.5 million from December 31, 2021, to March 31, 2022, driven by comprehensive income and stock-based compensation22 Statements of Cash Flows This section summarizes the cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2022, and 2021 Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by (used in) operating activities | $5,815 | $(29,966) | | Net cash (used in) provided by investing activities | $(71,759) | $38,048 | | Net cash provided by financing activities | $731 | $5,339 | | Net (decrease) increase in cash and cash equivalents | $(65,213) | $13,421 | | Cash and cash equivalents, end of period | $78,267 | $176,965 | - Operating activities generated $5.8 million in cash in Q1 2022, a significant improvement from a $30.0 million use in Q1 2021, primarily due to increased royalty revenue25182 - Investing activities used $71.8 million in Q1 2022, mainly for marketable securities purchases, a shift from providing $38.0 million in Q1 202125183 Notes to Financial Statements This section provides detailed explanations of the accounting policies, fair value measurements, and specific financial statement line items, offering context to the reported figures 1. Summary of Significant Accounting Policies This section outlines the key accounting principles and estimation methods used in preparing the interim financial statements, covering revenue recognition, asset valuation, and expense recognition - Interim financial statements are prepared in accordance with U.S. GAAP, requiring management estimates for items like royalty revenue, R&D expenses, and stock-based compensation2729 - Definite-lived intangible assets are amortized over their useful lives; no impairment charges were recorded for Q1 2022 or Q1 202130 - Marketable debt securities are available-for-sale and carried at fair value; an unrealized loss of $5.6 million was recorded in Q1 2022 due to changing interest rates, not credit quality33 - Equity securities are carried at fair value, with changes recognized in other income (expense); those without readily determinable fair value are recorded at initial cost minus impairment3435 2. Fair Value of Financial Instruments This section details the valuation methodologies and hierarchy used for financial instruments, categorizing assets based on the observability of inputs used in fair value measurements - Financial instruments are measured at fair value using a three-level hierarchy based on input observability39 Fair Value of Financial Assets (in thousands) | Asset Category | March 31, 2022 (Total Fair Value) | March 31, 2022 (Level 1) | March 31, 2022 (Level 2) | December 31, 2021 (Total Fair Value) | December 31, 2021 (Level 1) | December 31, 2021 (Level 2) | | :------------------- | :-------------------------------- | :----------------------- | :----------------------- | :-------------------------------- | :----------------------- | :----------------------- | | Money Market Funds | $20,742 | $20,742 | $— | $123,892 | $123,892 | $— | | Corporate Securities | $167,984 | $— | $167,984 | $144,418 | $— | $144,418 | | Government Securities | $349,109 | $— | $349,109 | $309,814 | $— | $309,814 | | Total | $537,835 | $20,742 | $517,093 | $578,124 | $123,892 | $454,232 | - As of March 31, 2022, most marketable debt and equity securities were classified as Level 2, with money market funds in Level 1; no transfers between Level 1 and Level 2 occurred40 3. Net Income (Loss) Per Common Share This section presents the calculation of basic and diluted net income or loss per common share, considering the impact of potentially dilutive securities Net Income (Loss) Per Common Share | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net income (loss) attributable to common stockholders | $23,594 | $(2,487) | | Basic weighted average common shares outstanding | 59,407,829 | 57,997,313 | | Diluted weighted average common shares outstanding | 61,078,494 | 57,997,313 | | Basic net income (loss) per common share | $0.40 | $(0.04) | | Diluted net income (loss) per common share | $0.39 | $(0.04) | - Basic net income per common share was $0.40 for Q1 2022, a significant increase from a loss of $0.04 in Q1 202142 - Potentially dilutive securities (2,556,779 shares in Q1 2022) were excluded from diluted EPS calculations when their inclusion would have an anti-dilutive effect42 4. Comprehensive Income (Loss) This section defines comprehensive income (loss) and details its components, including net income (loss) and other comprehensive income (loss) from marketable securities - Comprehensive income (loss) is composed of net income (loss) and other comprehensive income (loss)43 - For Q1 2022 and Q1 2021, the only component of other comprehensive income (loss) was net unrealized gain (loss) on marketable securities43 - Comprehensive income for Q1 2022 was $18.0 million, compared to a comprehensive loss of $2.5 million in Q1 2021, reflecting the net income and an unrealized loss on marketable debt securities19 5. Marketable Debt and Equity Securities This section provides a breakdown of the company's marketable debt and equity securities, detailing their fair values and the recognition of unrealized gains or losses Marketable Debt Securities (in thousands) | Category | March 31, 2022 (Fair Value) | December 31, 2021 (Fair Value) | | :------------------ | :-------------------------- | :--------------------------- | | Money Market Funds | $20,742 | $123,892 | | Corporate Securities | $167,984 | $144,418 | | Government Securities | $349,109 | $309,814 | | Total | $537,835 | $578,124 | - Unrealized losses on available-for-sale debt securities totaled $(7.1) million at March 31, 2022, primarily due to changes in the interest rate environment, not credit quality4445 Equity Securities with Readily Determinable Fair Value (in thousands) | Security | March 31, 2022 (Fair Value) | December 31, 2021 (Fair Value) | | :-------------------- | :-------------------------- | :--------------------------- | | Astria Common Stock | $4,294 | $3,449 | | INmune Common Stock | $15,876 | $19,233 | | Viridian Common Stock | $13,260 | $14,178 | | Total | $33,430 | $36,860 | - A net unrealized loss of $3.4 million was recognized on equity securities for Q1 2022, compared to a gain of $13.0 million in Q1 202152 6. Stock Based Compensation This section details the stock-based compensation expense recognized by the company, categorized by functional area and equity instrument type Stock-Based Compensation Expense (in thousands) | Category | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | General and administrative | $3,674 | $2,737 | | Research and development | $7,131 | $5,556 | | Total | $10,805 | $8,293 | Stock-Based Compensation by Type (in thousands) | Type | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :----------- | :-------------------------------- | :-------------------------------- | | Stock options | $6,833 | $6,530 | | ESPP | $301 | $248 | | RSUs | $3,671 | $1,515 | | Total | $10,805 | $8,293 | - Total stock-based compensation expense increased by $2.5 million to $10.8 million in Q1 2022, primarily due to higher RSU and stock option expenses58 - As of March 31, 2022, unamortized compensation expense related to unvested stock options was $72.9 million (to be recognized over 3.0 years) and for unvested RSUs was $42.3 million (over 2.3 years)6162 7. Leases This section describes the company's operating lease arrangements for office and laboratory spaces, including future undiscounted cash flows and key lease terms - The company leases office and laboratory space in Monrovia, San Diego, and Pasadena, California, with a new Pasadena lease expiring in July 2035636465 Undiscounted Operating Lease Cash Flows (in thousands) as of March 31, 2022 | Years ending December 31, | Amount | | :------------------------ | :----- | | For the remainder of 2022 | $1,376 | | 2023 | $5,566 | | 2024 | $5,713 | | 2025 | $5,817 | | 2026 | $5,279 | | 2027 | $5,433 | | Thereafter | $46,685 | | Total undiscounted lease payments | $75,869 | - As of March 31, 2022, the weighted-average remaining lease term for operating leases is 12.3 years, and the weighted-average discount rate is 5.8%68 8. Commitments and Contingencies This section addresses potential future obligations, including litigation and in-license agreements, and clarifies that no material losses are currently deemed probable or estimable - The company does not believe it is currently subject to any material litigation or matters where a material loss is reasonably possible69 - Future payments under in-license agreements (sublicense fees, royalties, development/commercialization milestones) are not included on the balance sheet as their amount and timing are not probable and estimable70 9. Collaboration and Licensing Agreements This section details revenue generated from various collaboration and licensing agreements, disaggregated by licensee and revenue type, highlighting key partnerships and performance obligations Revenue by Licensee (in millions) | Licensee | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------- | :-------------------------------- | :-------------------------------- | | Alexion | $6.1 | $5.3 | | Astellas | $5.0 | $— | | Genentech | $— | $0.2 | | Janssen | $1.8 | $14.6 | | MorphoSys | $2.3 | $13.9 | | Vir | $70.3 | $— | | Total | $85.5 | $34.0 | Disaggregation of Revenue (in millions) | Type | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------- | :-------------------------------- | :-------------------------------- | | Research collaboration | $1.8 | $14.8 | | Milestone | $5.0 | $12.5 | | Royalties | $78.7 | $6.7 | | Total | $85.5 | $34.0 | - Total revenue from collaboration and licensing agreements increased significantly to $85.5 million in Q1 2022 from $34.0 million in Q1 2021, primarily driven by $70.3 million in royalty revenue from Vir Biotechnology, Inc. for sotrovimab124125114 - The company recognized $5.0 million in milestone revenue from Astellas Pharma Inc. and $6.1 million in royalty revenue from Alexion Pharmaceuticals, Inc. for Ultomiris® in Q1 20228074 - Remaining performance obligations as of March 31, 2022, totaled $35.5 million, related to research activities under the Second Janssen Agreement, classified as current liabilities126 10. Income taxes This section explains the company's income tax position, including the absence of a tax provision, the full valuation allowance against deferred tax assets, and the impact of recent tax law changes - No provision for income taxes was recorded for the three months ended March 31, 2022, or 2021127 - Deferred income tax assets, primarily from net operating loss and tax credit carryforwards, are fully offset by a valuation allowance127 - The Tax Cuts and Jobs Act (TCJA) requires capitalization and amortization of R&D costs starting in 2022, which may increase taxable income and federal income tax payments127 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial condition and results of operations for the three months ended March 31, 2022, discussing business overview, the impact of COVID-19, updates on clinical-stage drug candidates, advancements in technology platforms, progress across partnerships, and detailed financial results Company Overview This section introduces Xencor as a clinical-stage biopharmaceutical company focused on developing engineered monoclonal antibody and cytokine therapeutics for cancer and autoimmune diseases - Xencor is a clinical-stage biopharmaceutical company focused on discovering and developing engineered monoclonal antibody and cytokine therapeutics for cancer and autoimmune diseases129 - The company leverages proprietary protein engineering and XmAb Fc domain technologies to create drug candidates with improved properties and functionality, including novel bispecific antibodies and enhanced antibody performance129132 - Three marketed XmAb medicines, developed with Xencor's protein engineering technologies, are currently generating milestones and royalties132 COVID-19 Impact This section discusses the evolving impact of the COVID-19 pandemic on business operations, including revenue generation from sotrovimab and potential future disruptions to clinical trials and supply chains - While the COVID-19 pandemic did not significantly disrupt business operations in Q1 2022, its evolving nature creates uncertainties for future financial condition, results of operations, and cash flows134 - Sotrovimab (VIR-7831), a COVID-19 antibody incorporating Xencor's Xtend Fc technology, generated approximately $83.7 million in revenue from partnerships and collaborations in Q1 2022135 - Sotrovimab is not currently authorized in any U.S. region due to the Omicron BA.2 subvariant, and royalties from its sales are expected to substantially decline in subsequent quarters of 2022135137 - Potential impacts on the business include slower patient enrollment in clinical trials and supply chain issues for research and manufacturing materials138141 Clinical-Stage XmAb Bispecific Antibody and Cytokine Drug Candidate Updates This section provides updates on the company's clinical-stage drug candidates, including progress in Phase 2 studies for vudalimab and plamotamab, and the discontinuation of certain internal development programs - Xencor and its partners are advancing a broad portfolio of clinical-stage XmAb drug candidates, including six wholly owned or co-development candidates for cancer and one for autoimmune disease139 - Vudalimab (PD-1 x CTLA-4) is in Phase 2 studies for metastatic castration-resistant prostate cancer (mCRPC) and other solid tumors, with initial data expected in H2 2022140 - Plamotamab (CD20 x CD3), co-developed with Janssen, showed encouraging clinical activity in Phase 1 for B-cell malignancies; subcutaneous administration and expansion cohort data are planned for 2022141144 - The company has discontinued internal development of tidutamab (SSTR2 x CD3) and XmAb841 (CTLA-4 x LAG-3) to focus resources on new clinical programs149 Advancements Expanding XmAb Bispecific and Cytokine Platforms This section highlights the company's efforts to expand its XmAb technology platforms through new bispecific antibody formats and cytokine programs, with several candidates advancing to clinical studies - Xencor is expanding its XmAb technology platforms by developing new bispecific antibody formats, such as the XmAb 2+1 bispecific antibody, designed for enhanced tumor selectivity151 - Lead XmAb 2+1 bispecific antibody candidate, XmAb819 (ENPP3 x CD3), is initiating a Phase 1 study for renal cell carcinoma (RCC)152153 - The company is advancing wholly owned CD28 bispecific antibody candidates, including XmAb808 (B7-H3 x CD28), with an IND application planned for H1 2022 and a Phase 1 study in H2 2022 for solid tumors154 - Preclinical data for new cytokine programs, XmAb143 (IL18-Fc) and a LAG-3 targeted IL15/IL15Rα-Fc fusion protein, were presented, and an IND application for XmAb662 (IL12-Fc) is planned for 2022156157 Progress Across Partnerships This section details the revenue generated from key partnerships, including royalties from Monjuvi®, Ultomiris®, and sotrovimab, underscoring the importance of collaboration in the company's business strategy - Partnerships are a key business strategy, generating revenue through upfront payments, milestone payments, and royalties from product licenses, novel bispecific antibody collaborations, and technology licensing agreements158 - Monjuvi® (tafasitamab), an FDA-approved CD19-directed cytolytic antibody, generated $2.3 million in estimated royalties from MorphoSys in Q1 2022160162 - Alexion's Ultomiris®, utilizing Xencor's Xtend Fc technology, generated $6.1 million in royalties in Q1 2022, following its approval for PNH, aHUS, and gMG167 - Vir Biotechnology's sotrovimab, using Xencor's Xtend Fc technology for COVID-19 treatment, generated $70.3 million in royalties in Q1 2022168 Results of Operations This section provides a detailed analysis of the company's financial performance, examining changes in revenues, research and development expenses, general and administrative expenses, and other income or expense Revenues This section analyzes the company's revenue streams, highlighting the significant increase in royalty revenue, primarily from Vir Biotechnology, and changes in research collaboration and milestone revenues Revenue Breakdown (in millions) | Revenue Type | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | | :------------------- | :-------------------------------- | :-------------------------------- | :------- | | Research collaboration | $1.8 | $14.8 | $(13.0) | | Milestone | $5.0 | $12.5 | $(7.5) | | Royalties | $78.7 | $6.7 | +$72.0 | | Total revenues | $85.5 | $34.0 | +$51.5 | - Total revenues increased by $51.5 million to $85.5 million in Q1 2022, primarily driven by a $72.0 million increase in royalty revenue, largely from Vir Biotechnology173174 - Research collaboration revenue decreased by $13.0 million, and milestone revenue decreased by $7.5 million173 Research and Development Expenses This section details the changes in research and development expenses, attributing increases to new development programs and stock-based compensation, while noting shifts in spending across specific programs Research and Development Expenses (in millions) | Category | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------- | | Total CD3 programs | $13.7 | $16.9 | $(3.2) | | XmAb808 (B7-H3 x CD28) | $4.8 | $— | +$4.8 | | Tumor micro environment (TME) activator programs | $13.6 | $11.5 | +$2.1 | | Total cytokine programs | $9.1 | $7.1 | +$2.0 | | Other, research and early stage programs | $6.5 | $5.9 | +$0.6 | | Total research and development expenses | $47.7 | $41.4 | +$6.3 | - Research and development expenses increased by $6.3 million to $47.7 million in Q1 2022, primarily due to increased spending on new development programs, XmAb808 and XmAb662176178 - Internal R&D expenses increased by $4.9 million, and stock-based compensation increased by $1.5 million176 General and Administrative Expenses This section explains the increase in general and administrative expenses, primarily due to higher staffing costs and additional lease expenses General and Administrative Expenses (in millions) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | | :-------------------------- | :-------------------------------- | :-------------------------------- | :------- | | General and administrative | $11.3 | $8.2 | +$3.1 | - General and administrative expenses increased by $3.1 million in Q1 2022, primarily due to increased staffing and additional lease expenses179 Other Income (Expense), Net This section analyzes the shift in other income (expense), net, from a gain to a loss, primarily driven by unrealized changes in the fair value of equity investments Other Income (Expense), Net (in millions) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | | :-------------------------- | :-------------------------------- | :-------------------------------- | :------- | | Other income (expense), net | $(2.9) | $13.1 | $(16.0) | - Other income (expense), net, shifted from a net gain of $13.1 million in Q1 2021 to a net loss of $2.9 million in Q1 2022180 - This change was primarily due to an unrealized loss recognized from the change in fair value of equity investments in Q1 2022, compared to an unrealized gain from the exchange of shares in Q1 2021180 Cash Flows This section provides a summary of cash flows from operating, investing, and financing activities, highlighting the significant improvement in operating cash flow due to increased royalty revenue Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------- | | Net cash provided by (used in) operating activities | $5,815 | $(29,966) | +$35,781 | | Net cash (used in) provided by investing activities | $(71,759) | $38,048 | -$109,807 | | Net cash provided by financing activities | $731 | $5,339 | -$4,608 | | Net increase (decrease) in cash | $(65,213) | $13,421 | -$78,634 | - Cash provided by operating activities significantly improved to $5.8 million in Q1 2022 from a $30.0 million use in Q1 2021, mainly due to additional royalty revenue182 - Investing activities used $71.8 million in Q1 2022, primarily for purchases of marketable securities, intangible assets, and property and equipment183 Liquidity and Capital Resources This section assesses the company's financial liquidity, detailing available capital and expectations for funding future operating expenses and capital expenditures, while acknowledging potential COVID-19 impacts - As of March 31, 2022, Xencor had $683.6 million in cash, cash equivalents, receivables, and marketable debt securities186 - The company expects existing capital and certain potential milestone payments to fund operating expenses and capital expenditure requirements through the end of 2025188 - Funding requirements are difficult to predict, and the COVID-19 pandemic could materially alter these estimates, potentially causing capital resources to be used sooner than expected188 Off-Balance Sheet Arrangements This section confirms the absence of any off-balance sheet arrangements during the reported periods, indicating no material unrecorded obligations or commitments - The company did not have any off-balance sheet arrangements during the periods presented or currently189 Contractual Obligations and Commitments This section states that there were no material changes to the company's specific contractual obligations outside the ordinary course of business during the three months ended March 31, 2022 - There were no material changes to the company's specific contractual obligations outside the ordinary course of business during the three months ended March 31, 2022190 Critical Accounting Policies This section directs readers to the 'Summary of Significant Accounting Policies' for a discussion of material changes in critical accounting policies - For a discussion of material changes in critical accounting policies, refer to 'Recent Accounting Pronouncements' in Note 1, Summary of Significant Accounting Policies, of the Notes to Financial Statements191 Item 3. Quantitative and Qualitative Disclosures About Market Risk This section states that there have been no material changes in the company's market risk profile during the three months ended March 31, 2022, and refers to the prior Annual Report on Form 10-K for additional information - There have been no material changes in the quantitative or qualitative aspects of the company's market risk profile during the three months ended March 31, 2022192 - Additional information regarding market risk exposure is available in the Form 10-K for the fiscal year ended December 31, 2021192 Item 4. Controls and Procedures Management, with the supervision of the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of March 31, 2022, concluding they were effective at a reasonable assurance level. No material changes in internal control over financial reporting occurred during the quarter, despite remote work arrangements due to COVID-19 - Disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of March 31, 2022194 - No material changes in internal control over financial reporting occurred during the three months ended March 31, 2022196 - Remote work arrangements due to the COVID-19 pandemic have not materially impacted the design and operating effectiveness of internal controls over financial reporting196 PART II. Other Information This section covers additional information not included in the financial statements, such as legal proceedings, risk factors, and a list of exhibits filed with the report Item 1. Legal Proceedings This section incorporates by reference the disclosure on legal proceedings from Note 8, Commitments and Contingencies, of the Notes to Financial Statements - The disclosure on legal proceedings is incorporated by reference from Note 8, 'Commitments and Contingencies,' in the Notes to Financial Statements199 Item 1A. Risk Factors This section advises readers to consider the risk factors detailed in the Annual Report on Form 10-K for December 31, 2021, and the 'Special Note Regarding Forward-Looking Statements' in this report, noting that additional unknown risks may also affect the business - Readers should carefully consider the risk factors discussed in Part I, 'Item 1A. Risk Factors' in the Annual Report on Form 10-K for the year ended December 31, 2021200 - Reference is also made to the 'Special Note Regarding Forward-Looking Statements' included in this Quarterly Report on Form 10-Q200 - Additional risks and uncertainties not currently known or deemed immaterial may also materially and adversely affect the business200 Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including organizational documents, investor agreements, and certifications from principal executive and financial officers, along with Inline XBRL documents - The exhibits include the Amended and Restated Certificate of Incorporation and Bylaws, Form of Common Stock Certificate, and Third Amended and Restated Investor Rights Agreement202 - Certifications from the Principal Executive Officer (Rule 13a-14(a) and Section 1350) and Principal Financial Officer (Rule 13a-14(a) and Section 1350) are included202 - Inline XBRL documents (Instance, Schema, Calculation, Definition, Labels, Presentation Linkbase Documents) are also filed202 Signatures This section formally attests to the accuracy and completeness of the report, signed by the company's President and Chief Executive Officer and Chief Financial Officer - The report was duly signed on behalf of Xencor, Inc. by Bassil I. Dahiyat, Ph.D., President and Chief Executive Officer, and John J. Kuch, Chief Financial Officer, on May 5, 2022204206
Xencor(XNCR) - 2022 Q1 - Quarterly Report