Financial 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[228]. - The company reported a net loss of $9.8 million for the three months ended March 31, 2023, with negative cash flows from operations of $4.9 million[222]. - As of March 31, 2023, the company had an accumulated deficit of $1.2 billion[222]. - Cash and cash equivalents decreased to $44.3 million as of March 31, 2023, down from $57.8 million as of December 31, 2022[237]. - Net cash used in operating activities was $4.9 million for the three months ended March 31, 2023, compared to $1.0 million for the same period in 2022[238]. - The company incurred arbitration settlement costs of $4.1 million during the three months ended March 31, 2023[234]. - As of March 31, 2023, the company had an accumulated deficit of $1.2 billion and $44.3 million in cash and cash equivalents, indicating significant operating losses since inception[241]. Expenses - General and administrative expenses increased to $6.2 million for the three months ended March 31, 2023, compared to $5.1 million in the same period in 2022, primarily due to increased stock-based compensation and consulting costs[233]. - Research and development expenses remained low at $54,000 for the three months ended March 31, 2023, consistent with $56,000 for the same period in 2022[231]. - The company incurred a cost of $4.1 million in April 2023 due to an adverse arbitration ruling, which required it to cover the counter-party's costs[245]. Investments and Income - 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[235]. - The company has potential contingent consideration of $0.1 million recorded for milestone and one-time payments due under agreements with Bioasis and Aptevo as of March 31, 2023[249]. Future Outlook - Future revenues from licenses, milestones, and royalties depend on the achievement of milestones or product sales by existing licensees, with no guarantee of future milestone payments[243]. - The company plans to continue deploying capital towards acquiring rights to potential future milestone and royalty streams in the near and long term[248]. - Potential future milestone payments and legal fees under licensing agreements could aggregate up to $6.3 million, contingent on the achievement of specific milestones[251]. Capital and Financing - The company may seek additional capital through its 2018 Common Stock ATM Agreement or 2021 Series B Preferred Stock ATM Agreement, depending on market conditions[243]. - Holders of Series A Preferred Stock are entitled to cumulative cash dividends at a rate of 8.625%, while Series B Preferred Stock holders receive dividends at 8.375%, both payable quarterly[252]. Operational Considerations - The company is evaluating its office space needs as its amended headquarters lease expires in July 2023, but does not expect significant incremental costs[247]. - The company had approximately $4.5 million in cash and cash equivalents in accounts with SVB at the time of its closure on March 10, 2023, and regained access to $3.7 million by March 31, 2023[242].
XOMA(XOMAO) - 2023 Q1 - Quarterly Report