XBiotech(US:XBIT)2025-11-12 16:45Financial Performance - As of September 30, 2025, the accumulated deficit was $(109.5) million, with net losses before income tax of $6.0 million and $18.6 million for the three months and nine months ended September 30, 2025, respectively[72]. - The company does not expect to generate any revenue in 2025 and anticipates significant and increasing operating losses in the foreseeable future[72]. - The company expects to continue incurring operating losses in the future, with no anticipated additional revenue from the clinical manufacturing agreement with Janssen[100]. Research and Development Expenses - Research and development expenses totaled $5.1 million and $22.0 million for the three months and nine months ended September 30, 2025, representing decreases of 29% and 26% compared to the same periods in 2024[89][90]. - Clinical trials and sponsored research expenses dropped significantly, with no active trials during the three months and nine months ended September 30, 2025, leading to an 88% decrease in related costs[90]. - Share-based compensation related to research and development accounted for $2.7 million for the nine months ended September 30, 2025, compared to $0.7 million for the same period in 2024, marking a 266% increase[90]. - Total research and development expenses from inception through September 30, 2025, reached $371.7 million[75]. General and Administrative Expenses - General and administrative expenses increased to $1.0 million for the three months ended September 30, 2025, up 24% from $0.8 million in the same period of 2024[91]. - General and administrative expenses as a percentage of total operating expenses were 16% and 15% for the three months and nine months ended September 30, 2025, compared to 10% and 11% for the same periods in 2024[80]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, totaled $147.4 million, down from $183.1 million at the same date in 2024, representing a decrease of about 19.5%[96]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $16.968 million, an improvement from $24.423 million in 2024, indicating a reduction of approximately 30.2%[97]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $255 thousand, significantly lower than $1.2 million in 2024, showing a decrease of about 78.8%[98]. - The effect of foreign exchange rates on cash and cash equivalents resulted in a gain of $2.163 million for the nine months ended September 30, 2025, compared to a loss of $1.429 million in 2024[96]. Other Income and Interest - Interest income for the three months ended September 30, 2025, was $1.427 million, a decrease from $2.369 million in 2024[94]. - Total other income for the nine months ended September 30, 2025, was $7.441 million, compared to $5.709 million in 2024, reflecting a year-over-year increase of approximately 30.4%[94]. Employment and Company Structure - The company had 88 employees as of September 30, 2025[72]. - The company has not engaged in any off-balance sheet activities since inception, including structured finance or special purpose entities[101]. - The company is not currently exposed to material market risks from financial instruments or fluctuations in foreign currencies, and does not engage in hedging activities[102]. Financing Activities - The Convertible Loan Agreement provided $10 million in net cash for the construction of a new research and development facility, which was fully repaid by January 31, 2025[99].