Financial Performance - XOMA reported a net loss of $17.2 million for the three months ended September 30, 2024, and an accumulated deficit of $1.2 billion as of the same date [285]. - Total income and revenues for the three months ended September 30, 2024, were $7.2 million, a significant increase of $6.4 million compared to $830,000 in the same period of 2023 [297]. - For the nine months ended September 30, 2024, total income and revenues were $19.8 million, up from $2.9 million in the same period of 2023, reflecting a change of $16.8 million [297]. - The accumulated deficit as of September 30, 2024, was $1.2 billion, indicating significant operating losses since inception [321]. Revenue Sources - Income from purchased receivables for the three months ended September 30, 2024, included $5.4 million related to sales of VABYSMO [298]. - Revenue from contracts with customers for the nine months ended September 30, 2024, included a milestone payment of $5.0 million from Rezolute [301]. - XOMA expects future income related to VABYSMO to increase as sales are anticipated to grow [300]. Expenses - R&D expenses for Q3 2024 were $0.8 million, a significant increase from $25,000 in Q3 2023, primarily due to clinical trial costs related to KIN-3248 [303]. - G&A expenses for Q3 2024 were $8.0 million, up from $6.4 million in Q3 2023, with $1.4 million attributed to costs incurred from the Kinnate acquisition [304]. - G&A expenses for the nine months ended September 30, 2024, totaled $27.5 million, compared to $18.3 million in the same period of 2023, reflecting a $9.2 million increase mainly due to Kinnate acquisition costs [305]. Acquisitions and Agreements - XOMA entered into a royalty purchase agreement with Twist Bioscience for a $15.0 million upfront payment, potentially receiving up to $0.5 billion in milestone payments [286]. - The company recognized a $2.2 million milestone payment upon FDA approval of MIPLYFFA, with eligibility for mid-single-digit royalties on net sales [289]. - A $19.3 million gain was recognized on the acquisition of Kinnate during the nine months ended September 30, 2024, due to the fair value of net assets acquired exceeding the purchase consideration [309]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024, were $142.1 million, down from $153.3 million as of December 31, 2023, reflecting a decrease of $11.2 million [317]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $10.8 million, a decrease of $3.4 million compared to the same period in 2023 [318]. - Net cash provided by investing activities was $8.2 million for the nine months ended September 30, 2024, compared to a net cash used of $6.2 million in the same period of 2023, marking a $14.4 million change [319]. Future Obligations and Liabilities - The company has 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 repurchases as of September 30, 2024 [328]. - Future R&D and G&A expenditures related to the Kinnate acquisition are expected to be funded by cash received upon the merger's close [327]. - The company has recorded $4.0 million of contingent consideration related to RPAs, AAAs, and CPPAs on its balance sheets as of September 30, 2024 [332]. - The company expects to make additional milestone payments of up to $6.0 million under the Affitech CPPA and $1.0 million under the LadRx Agreements [332]. - The company recognized a $1.0 million liability for a commercial milestone payment following FDA approval of MIPLYFFA on September 20, 2024 [339]. - Based on reported 2024 sales of VABYSMO through September 30, 2024, the company recognized $3.0 million in liabilities for sales-based milestone payments [340]. - Holders of Series A Preferred Stock are entitled to cumulative cash dividends at a rate of 8.625% per year, while Series B Depositary Shares have a rate of 8.375% per year [335]. - The company is obligated to pay an additional $11.0 million for each successive $22.0 million received under the Daré RPAs after achieving a return threshold of $88.0 million [338]. - The company has potential future milestone payments aggregating up to $6.3 million that have not been recorded on the balance sheet as of September 30, 2024 [334].
XOMA(XOMAO) - 2024 Q3 - Quarterly Report