Financial Performance - The company reported a net loss of $8.6 million and net cash used in operating activities of $4.9 million for the three months ended March 31, 2024, with an accumulated deficit of $1.2 billion as of the same date [259]. - The company generated a net loss of $40.8 million and net cash used in operating activities of $18.2 million for the year ended December 31, 2023 [259]. - Total revenues for Q1 2024 were $1.49 million, a significant increase of 241% compared to $437,000 in Q1 2023 [278]. - Revenue from contracts with customers included $1.0 million in milestone payments from AVEO in Q1 2024, while there was no revenue from contracts in Q1 2023 [279]. - Net cash used in operating activities was $4.95 million in Q1 2024, slightly higher than $4.92 million in Q1 2023 [289]. Acquisitions and Agreements - In February 2024, the company acquired Kinnate for $2.5879 in cash per share plus one non-transferable contingent value right (CVR) per share, with the merger closing on April 3, 2024 [260]. - Kinnate sold exarafenib and related IP for an upfront cash consideration of $0.5 million and contingent consideration of $30.5 million upon achieving specified milestones [261]. - The company entered into Daré Royalty Purchase Agreements for $22.0 million, acquiring royalties and potential commercial milestones related to XACIATO™ [266]. - The company earned a $9.0 million milestone payment from the Viracta Royalty Purchase Agreement following FDA approval of OJEMDA [267]. - The company made a $1.0 million milestone payment to LadRx in January 2024 following FDA acceptance of NDA resubmission for arimoclomol [273]. - The company earned a $5.0 million milestone from Rezolute after the first patient was dosed in its Phase 3 trial of RZ358 [274]. Expenses and Financial Obligations - R&D expenses decreased to $33,000 in Q1 2024 from $54,000 in Q1 2023, with expectations of increased costs in 2024 due to ongoing clinical trials [281]. - G&A expenses rose to $8.5 million in Q1 2024, up from $6.2 million in Q1 2023, primarily due to a $1.3 million increase in stock-based compensation [282]. - Interest expense for Q1 2024 was $3.55 million, reflecting costs associated with the Blue Owl Loan initiated in December 2023 [284]. - The outstanding principal balance of the Blue Owl Loan is $120.6 million as of March 31, 2024, with an interest rate of 9.875% [299]. Cash Position - Cash and cash equivalents decreased to $136.2 million as of March 31, 2024, down from $153.3 million at the end of 2023 [288]. - The company authorized a stock repurchase program allowing for the purchase of up to $50.0 million of common stock through January 2027, with $13,000 spent on 660 shares as of March 31, 2024 [265]. - The company authorized a stock repurchase program of up to $50 million, with $13,000 spent on repurchasing 660 shares by March 31, 2024 [298]. Future Expectations - The company expects to continue acquiring rights to future milestone payments and royalty streams as part of its business model [300]. - Potential future milestone payments and legal fees related to licensing and development programs could aggregate up to $6.3 million, contingent on achieving specific milestones [303]. Dividends - Series A Preferred Stock holders are entitled to cumulative cash dividends at a rate of 8.625%, equating to $2.15625 per share annually [304]. - Series B Depositary Shares holders are entitled to cumulative cash dividends at a rate of 8.375%, equating to $2,093.75 per year per share [304]. - All dividends on Series A and Series B Preferred Stock have been paid as scheduled since original issuance, with expectations to continue these payments using existing capital resources [304]. Regulatory and Reporting - There have been no material changes in commitments and contingencies since the Annual Report on Form 10-K for the year ended December 31, 2023 [305]. - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [306].
XOMA(XOMAO) - 2024 Q1 - Quarterly Report