XOMA(XOMA) - 2025 Q2 - Quarterly Report

Financial Performance - Net income for the three and six months ended June 30, 2025, was $9.2 million and $11.6 million, respectively, with an accumulated deficit of $1.2 billion as of June 30, 2025[280]. - The company generated net cash provided by operating activities of $8.7 million for the six months ended June 30, 2025, and reported a net loss of $13.8 million for the year ended December 31, 2024[280]. - Total income and revenues for Q2 2025 were $13,129,000, a 18.4% increase from $11,086,000 in Q2 2024[299]. - Income from purchased receivables under the EIR method increased to $6,007,000 in Q2 2025 from $4,562,000 in Q2 2024, representing a 31.7% growth[299]. - Other income, net for Q2 2025 was $7,824,000, an increase of 281.5% from $2,050,000 in Q2 2024[309]. - The total cash receipts for the six months ended June 30, 2025, were $29.6 million, compared to $32.4 million for the same period in 2024, reflecting a decrease of approximately 8%[315]. Expenses and Cash Flow - R&D expenses for Q2 2025 were $69,000, a significant decrease of 94.1% from $1,161,000 in Q2 2024[304]. - General and administrative expenses decreased to $7,802,000 in Q2 2025 from $11,004,000 in Q2 2024, a reduction of 29.1%[305]. - Cash and cash equivalents as of June 30, 2025, were $75,060,000, down from $101,654,000 at the end of 2024, a decrease of $26,594,000[312]. - Net cash provided by operating activities for the six months ended June 30, 2025, was $8,668,000, compared to a net cash used of $2,220,000 in the same period of 2024[313]. - Net cash used in investing activities for the six months ended June 30, 2025, was $26,674,000, primarily due to payments related to the BioInvent contract-based intangible asset of $20,600,000[313]. - Total interest expense for Q2 2025 was $3,236,000, a decrease of 4.9% from $3,402,000 in Q2 2024[306]. Acquisitions and Agreements - The company plans to acquire Turnstone for $0.34 in cash per share, plus one non-transferable CVR per share, with the merger closing on August 11, 2025[281]. - An agreement was executed to facilitate the acquisition of ESSA's common shares by Xeno, with the company providing bridge financing and acting as administrator of the related CVR[282]. - The company plans to acquire LAVA for a base price of $1.16 in cash per ordinary share, plus up to an additional $0.08 per share, with the acquisition not yet closed[285]. - The company plans to acquire HilleVax for $1.95 in cash per share, plus one non-transferable CVR per share, with the merger not yet closed[286]. - The company paid $20.0 million to acquire all remaining rights to milestone payments and royalties owed by BioInvent, with an additional $10.0 million contingent payment upon FDA approval of mezagitamab[289]. - The company is eligible to receive up to $270 million in upfront and milestone payments from the sale of pipeline assets acquired from Kinnate Biopharma Inc.[292]. - A milestone payment of $5.0 million was earned from Rezolute upon dosing the last patient in its first Phase 3 trial of ersodetug (RZ358) in May 2025[287]. - A milestone payment of $3.0 million was earned from Takeda upon dosing the first patient in its Phase 3 clinical trial of mezagitamab (TAK-079) in March 2025[293]. Stock and Future Obligations - The company repurchased approximately $1.8 million of its common stock during the quarter ended June 30, 2025, under its stock repurchase program[322]. - Under the Blue Owl Loan Agreement, the outstanding principal balance was $113.9 million, with a current portion of $11.7 million and a non-current portion of $102.2 million as of June 30, 2025[323]. - The company expects to incur incremental undiscounted costs of $0.3 million associated with its building lease as of June 30, 2025[321]. - 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[325]. - The company has potential future milestone payments aggregating up to $12.1 million, which have not been recorded on its balance sheet as of June 30, 2025[327]. - The company expects to continue making scheduled dividend payments on its Series A and Series B Preferred Stock using existing capital resources[328]. - The company entered into the BioInvent Agreement, obligating it to pay $10.0 million upon FDA approval of mezagitamab for the treatment of IgA nephropathy in the U.S.[330].