XOMA(US:XOMA)2020-11-05 12:42Revenue Performance - Total revenues for Q3 2020 were $557,000, a decrease of $8.3 million compared to $8.9 million in Q3 2019[229]. - Revenue from contracts with customers dropped to $200,000 in Q3 2020 from $8.5 million in Q3 2019, primarily due to the absence of significant milestone payments[231]. Expenses - Research and development expenses for Q3 2020 were $34,000, down from $100,000 in Q3 2019, reflecting a shift in employee categorization[234]. - General and administrative expenses decreased to $3.2 million in Q3 2020 from $5.8 million in Q3 2019, mainly due to reduced salary and facilities costs[236]. - The company expects lower R&D spending for the remainder of 2020 due to a focus on the royalty aggregator business model[235]. Milestone Payments and Agreements - The company received a $25 million milestone payment from Novartis for the advancement of NIS793 to Phase 2 development[219]. - The company entered into a license agreement with Zydus, which includes potential milestone payments of up to $24 million and royalties[226]. - The company anticipates potential delays in milestone payments due to the impact of COVID-19 on clinical trial activities of its licensees[232]. Financial Position - Cash balance as of September 30, 2020, was $45.7 million, a decrease of $10.96 million from $56.69 million at the end of 2019[243]. - The company has an accumulated deficit of $1.2 billion as of September 30, 2020[251]. Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2020, was $7.6 million, primarily due to a net loss of $9.4 million[244]. - Net cash used in investing activities for the nine months ended September 30, 2020, was $9,000, compared to $19.3 million in 2019 due to different investment activities[245]. - Net cash used in financing activities for the nine months ended September 30, 2020, was $3.4 million, primarily related to principal payments of debt[246]. Interest and Other Income - Total interest expense for the nine months ended September 30, 2020, was $1,484,000, an increase of $148,000 compared to $1,336,000 in 2019[239]. - Other income, net for the nine months ended September 30, 2020, was $2,046,000, a decrease of $1,513,000 compared to $3,559,000 in 2019[240]. - The company recognized gains of $1.9 million from the fair value remeasurement of equity securities during the nine months ended September 30, 2020, compared to $0.5 million in 2019[241]. - The company recorded an income tax benefit of $1.5 million for the nine months ended September 30, 2020, due to the CARES Act[242]. Bad Debt and Uncertainties - The company recorded $1.4 million in bad debt expense related to future cash payments from Rezolute due to uncertainties from COVID-19[222]. - The company expects to continue recognizing savings in facilities costs related to legacy leases throughout the remainder of 2020[237].