XOMA(US:XOMA)2025-11-12 12:46Financial Performance - Net income for the three and nine months ended September 30, 2025, was $14.1 million and $25.6 million, respectively, with an accumulated deficit of $1.2 billion as of September 30, 2025[302]. - Total income and revenues for the three months ended September 30, 2025, were $9,351,000, an increase of 30% compared to $7,197,000 in 2024; for the nine months ended September 30, 2025, total income and revenues were $38,392,000, up 94% from $19,773,000 in 2024[322]. - Income from purchased receivables under the EIR method for the three months ended September 30, 2025, was $6,962,000, a 28% increase from $5,423,000 in 2024; for the nine months, it rose to $19,039,000 from $9,985,000, reflecting a 91% increase[324]. - Total cash receipts from royalties and commercial payments for the nine months ended September 30, 2025, amounted to $30.3 million, up from $18.2 million in 2024, reflecting a year-over-year increase of 66%[343]. - Cash and cash equivalents as of September 30, 2025, were $45,189,000, a decrease of 56% from $101,654,000 as of December 31, 2024; working capital decreased to $82,402,000 from $101,230,000, a decline of 18%[339]. Acquisitions and Investments - The company completed the acquisition of HilleVax for a total purchase consideration of $105.3 million, recognizing a $17.9 million bargain purchase gain[303][304]. - The acquisition of Turnstone was completed for $9.6 million, resulting in a $1.8 million bargain purchase gain[305]. - The company entered into an agreement to acquire all remaining rights to milestone payments and royalties from BioInvent for $20.0 million, with an additional $10.0 million contingent payment upon FDA approval of mezagitamab[314]. - The company is eligible to receive up to $270 million in upfront and milestone payments from the Kinnate acquisition, with royalty payments ranging from low single digits to mid-teens on commercial sales[315]. - The company plans to acquire LAVA with a base price of $1.16 per share, with the acquisition not yet closed as of the report date[308]. - The company has set aside $39.9 million in restricted cash for the Mural acquisition, which has not yet closed[309]. Milestone Payments - A milestone payment of $5.0 million was earned from Rezolute upon dosing the last patient in its Phase 3 trial of ersodetug (RZ358)[312]. - A milestone payment of $3.0 million was earned from Takeda upon dosing the first patient in its Phase 3 clinical trial of mezagitamab[317]. - The company has potential future milestone payments totaling $12.1 million that are contingent upon the achievement of specific developmental milestones by licensees[355]. Expenses and Financial Management - Total research and development expenses for the three months ended September 30, 2025, were $817,000, a decrease of 88% from $1,431,000 in 2024; for the nine months, expenses were $2,011,000, down 29% from $2,845,000 in 2024[329]. - General and administrative expenses for the three months ended September 30, 2025, were $9,734,000, an increase of 21% from $8,020,000 in 2024; for the nine months, expenses decreased to $25,682,000 from $27,485,000, a reduction of 7%[331]. - Interest expense for the three months ended September 30, 2025, was $3,301,000, a decrease of 6% from $3,493,000 in 2024; for the nine months, it decreased to $10,004,000 from $10,446,000, a reduction of 4%[333]. - There were no credit losses on purchased receivables for the three or nine months ended September 30, 2025; in contrast, credit losses were $23,000,000 for the nine months ended September 30, 2024[332]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $8.4 million, a significant increase of $19.2 million compared to a net cash used of $(10.8) million in the same period of 2024[340]. - Net cash provided by investing activities was $31.5 million, primarily driven by net cash acquired in the HilleVax acquisition of $46.8 million and the sale of equity securities for $7.0 million[341]. - Net cash used in financing activities totaled $15.8 million, mainly due to principal repayments on the Blue Owl Loan of $10.6 million and dividend payments of $4.1 million on preferred stock[342]. - The stock repurchase program authorized by the Board allows for the purchase of up to $50.0 million of common stock, with $2.4 million repurchased as of September 30, 2025[350]. - The company plans to seek additional capital through its 2025 Common Stock ATM Agreement or other public or private debt or equity transactions, depending on market conditions[345]. Tax and Liabilities - The company recorded an income tax expense of $49,000 for the three and nine months ended September 30, 2025, primarily related to a deferred tax liability from the acquisition of HilleVax[338]. - The company expects to incur approximately $41.7 million in undiscounted costs under the Boston Lease acquired as part of the HilleVax acquisition, which expires on December 31, 2032[349]. Preferred Stock Dividends - Holders of Series A Preferred Stock are entitled to cumulative cash dividends at a rate of 8.625%, while Series B Preferred Stock holders receive dividends at a rate of 8.375%[356].