Xeris Biopharma(US:XERS)2025-03-06 21:07Financial Performance - Xeris Biopharma Holdings, Inc. reported total revenue of $203.07 million for the year ended December 31, 2024, an increase of 24% compared to $163.91 million in 2023 [521]. - Product revenue, net for 2024 was $196.64 million, up 28% from $153.36 million in 2023 [521]. - The company incurred a net loss of $54.84 million in 2024, compared to a net loss of $62.26 million in 2023, reflecting a 12% improvement [521]. - Total costs and expenses increased to $236.72 million in 2024, up from $207.92 million in 2023, primarily driven by higher selling, general, and administrative expenses [521]. - The company reported a net loss of $54.8 million for the year ended December 31, 2024, compared to a net loss of $62.3 million in 2023 and $94.7 million in 2022, indicating a 12% improvement year-over-year [527]. Cash Flow and Liquidity - Net cash used in operating activities decreased to $37.0 million for the year ended December 31, 2024, from $47.0 million in 2023, primarily due to reduced working capital usage [462]. - Cash and cash equivalents as of December 31, 2024, were $71.62 million, an increase from $67.45 million in 2023 [518]. - The company had cash, cash equivalents, and restricted cash of $75.7 million at the end of 2024, up from $71.7 million in 2023 [529]. - The company expects to continue incurring net losses for at least the next 12 months, but believes current cash resources are sufficient to sustain operations during this period [535]. Debt and Financing - Long-term debt, net of current portion, rose to $217.01 million in 2024, compared to $190.93 million in 2023 [518]. - Total debt increased to $232,108,000 as of December 31, 2024, compared to $190,932,000 in 2023, reflecting a growth of 21.5% [608]. - The Amended and Restated Credit Agreement provided for $200 million in term loans, with an effective interest rate of approximately 11.4% [625]. - The company may finance operations through equity or debt financing, but there is no assurance that such funding will be available on acceptable terms, which could negatively impact financial condition and business strategies [536]. Revenue Recognition and Accounting Policies - The company recognizes revenue when customers obtain control of promised goods, with revenues recorded at the net product sales price after accounting for various allowances [471]. - The company applies significant judgments and estimates in determining allowances for patient copay assistance, commercial rebates, and government rebates, impacting reported revenues [471]. - If the company were to increase or decrease the returns reserve rate by 1%, it would have a $1.8 million impact on revenue for the year ended December 31, 2024 [552]. - The company offers savings programs to commercially insured patients, which are recorded as a reduction of product revenue [546]. Assets and Inventory - The company's total assets slightly increased to $323.06 million in 2024 from $322.60 million in 2023 [518]. - Total inventory as of December 31, 2024, was $48.18 million, compared to $38.84 million in 2023, reflecting a 24% increase [603]. - Inventory reserves increased to $7.7 million at December 31, 2024, from $2.4 million in 2023 [603]. Stock-Based Compensation - Stock-based compensation expenses increased to $18.4 million in 2024 from $10.7 million in 2023, reflecting higher employee incentives [527]. - The total fair value of RSUs vested during 2024 was $10.7 million, compared to $2.8 million in 2023 [656]. - The company recognized total stock-based compensation expense of $18.4 million in 2024, significantly higher than $10.7 million in 2023 [657]. Market Risks - The company is subject to market risks, including interest rate and foreign currency exchange rate fluctuations, but net foreign currency gains and losses did not materially affect operations for the year ended December 31, 2024 [480]. - A hypothetical one-percentage point increase or decrease in interest rates would impact interest income by approximately $0.8 million annually based on cash and investments outstanding as of December 31, 2024 [481]. Internal Controls and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the auditor's opinion [505]. - The company adopted several new accounting standards, including ASU 2023-03, with no material impact on financial statements [586].