Financial Performance - For the three months ended March 31, 2025, the company generated net income of $2.4 million, compared to a net loss of $8.6 million for the same period in 2024[245]. - Total income and revenues for the three months ended March 31, 2025, were $15.9 million, an increase of $14.4 million from $1.5 million in the same period in 2024[252]. - The company earned a $3.0 million milestone payment from Takeda for the first patient dosed in its Phase 3 clinical trial of mezagitamab (TAK-079)[248]. - Income from purchased receivables under the EIR method for the three months ended March 31, 2025, included estimated income of $5.8 million related to sales of VABYSMO[253]. - Total other (expense) income, net for Q1 2025 was $(95,000), a decrease of $2.1 million compared to $1.96 million in Q1 2024[262]. - Investment income decreased by $0.8 million to $0.9 million in Q1 2025 due to decreased balances and market interest rates[262]. - Net cash provided by operating activities was $2.2 million in Q1 2025, an increase of $7.1 million compared to $(4.9 million) in Q1 2024[265]. - Total cash receipts for Q1 2025 were $17.96 million, up from $9.77 million in Q1 2024, driven by increased royalties from VABYSMO[267]. Expenses - R&D expenses for the three months ended March 31, 2025, were $1.3 million, a significant increase from $33 thousand in the same period in 2024, primarily due to licensing fees related to the Takeda collaboration[258]. - G&A expenses decreased to $8.1 million for the three months ended March 31, 2025, from $8.5 million in the same period in 2024, mainly due to reduced stock compensation costs[259]. - Interest expense for the three months ended March 31, 2025, was $3.5 million, slightly lower than $3.6 million in the same period in 2024[261]. - The company expects to incur $0.4 million in incremental costs related to its new headquarters lease in Emeryville, California[272]. Cash Position - Cash and cash equivalents as of March 31, 2025, were $90.3 million, down $11.4 million from $101.7 million as of December 31, 2024[264]. - The outstanding principal balance under the Blue Owl Loan Agreement was $113.6 million as of March 31, 2025, with an annual interest rate of 9.875%[274]. Future Expectations - The company expects to receive up to $270 million in upfront and milestone payments from the Kinnate acquisition, with future royalty payments ranging from low single digits to mid-teens on commercial sales[246]. - The company expects future revenue and income to be driven by milestone and royalty payments associated with its portfolio of therapeutic candidates[244]. Accumulated Deficit and Tax Benefits - The company had an accumulated deficit of $1.2 billion as of March 31, 2025, consistent with the previous year[245]. - The company has $5.9 million in gross unrecognized tax benefits, which will not impact the effective tax rate due to a full valuation allowance[263]. Stock Repurchase Program - The stock repurchase program authorized up to $50 million, with $0.6 million spent to repurchase 26,488 shares as of March 31, 2025[273].
XOMA(XOMAO) - 2025 Q1 - Quarterly Report