XOMA(XOMA) - 2020 Q2 - Quarterly Report

Revenue Performance - Total revenues for Q2 2020 were $444,000, a decrease of 54% compared to $962,000 in Q2 2019, and for the first half of 2020, revenues were $1.248 million, down 86% from $9.093 million in the same period of 2019[219]. - Revenue from contracts with customers decreased by $572,000 in Q2 2020 compared to Q2 2019, primarily due to a $500,000 revenue recognition under a collaboration agreement with Takeda in Q2 2019[219]. - The company expects future revenues to be dependent on milestone payments and product sales by existing licensees, with potential delays anticipated due to COVID-19 impacts on clinical trial activities[221]. Expenses - Research and development expenses for Q2 2020 were $38,000, a significant decrease of 94% from $700,000 in Q2 2019, and for the first half of 2020, R&D expenses were $100,000, down 90% from $1 million in the same period of 2019[223]. - General and administrative expenses for Q2 2020 were $3.6 million, a decrease of 27% from $4.9 million in Q2 2019, and for the first half of 2020, G&A expenses were $9.9 million, down 9% from $10.9 million in the same period of 2019[225]. - Interest expense for Q2 2020 was $508,000, an increase of 20% compared to $423,000 in Q2 2019, primarily due to the outstanding loan balance with SVB[227]. - The company anticipates lower R&D spending for the remainder of 2020, focusing on its royalty aggregator business model[224]. Financial Position - Cash decreased by $7.2 million to $49.5 million as of June 30, 2020, from $56.7 million at December 31, 2019[231]. - Net cash used in operating activities was $5.2 million for the six months ended June 30, 2020, primarily due to an $8.3 million net loss[232]. - The company had an accumulated deficit of $1.2 billion as of June 30, 2020[239]. - The company anticipates that its cash position will enable it to maintain operations for at least 12 months following the filing date of the report[239]. - Net cash used in financing activities was $2.0 million for the six months ended June 30, 2020, primarily related to principal payments of debt[234]. - The company has not sold any shares under the 2018 ATM Agreement, which allows for sales up to $30.0 million[238]. Other Financial Activities - The company recorded a $1.4 million bad debt expense related to Future Cash Payments from Rezolute for Q1 2020, reflecting concerns over the collectability of future payments[217]. - The company recorded an income tax benefit of $1.5 million for the six months ended June 30, 2020, due to the CARES Act[230]. - The company amended its license agreement with Rezolute to extend the payment schedule of a $2.6 million balance, spreading it into seven quarterly payments through September 30, 2021, due to COVID-19 related cash preservation needs[212]. - The company is actively evaluating potential acquisitions of milestone and royalty rights, which may lead to increased professional fees[226]. - The company is taking steps to manage resources and may reduce or delay acquisitions to improve cash position amid the COVID-19 pandemic[240]. Other Income and Losses - Total other income (expense), net decreased by $936,000 to $126,000 for the three months ended June 30, 2020, compared to $1,062,000 in 2019[228]. - The company recorded a loss of $0.2 million on the fair value of equity securities for the six months ended June 30, 2020, compared to a gain of $0.7 million in the same period of 2019[229].