Financial Performance - Net income for the three and nine months ended September 30, 2025, was $14.1 million and $25.6 million, respectively[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 growth of 66.5%[343]. Acquisitions and Milestone Payments - The acquisition of HilleVax in September 2025 totaled $105.3 million, including a $17.9 million bargain purchase gain[303][304]. - The acquisition of Turnstone in August 2025 amounted to $9.6 million, with a recognized bargain purchase gain of $1.8 million[305]. - A milestone payment of $5.0 million was earned from Rezolute in May 2025 for the completion of its Phase 3 trial[312]. - The company recognized a $3.0 million milestone payment from Takeda for the first patient dosed in the Phase 3 trial of mezagitamab[317]. - The company is eligible to receive up to $270 million in payments from the Kinnate acquisition, with distributions to CVR holders already initiated[315]. - 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 Position - 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, R&D expenses were $2,011,000, down 29% from $2,580,000 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, G&A expenses decreased to $25,682,000 from $27,485,000, a decline of 7%[331]. - Total 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 decline of 4%[333]. - 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]. - As of September 30, 2025, the company had an accumulated deficit of $1.2 billion and $45.2 million in unrestricted cash and cash equivalents[343]. Financing Activities - The company entered into a new ATM Agreement allowing for the sale of up to $75.0 million in common stock[310]. - The company paid BioInvent $20.0 million to acquire remaining rights to milestone payments and royalties, with an additional $10.0 million contingent upon FDA approval of mezagitamab[314]. - 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 2024[340]. - Net cash provided by investing activities was $31.5 million, primarily driven by the HilleVax acquisition with net cash acquired 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[342]. Stock and Dividends - 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]. - Holders of Series A Preferred Stock are entitled to cumulative cash dividends at a rate of 8.625%, while Series B Preferred Stock dividends are at 8.375%[356]. - The company plans to continue making scheduled dividend payments using existing capital resources[356]. Future Obligations - The company expects to incur approximately $41.7 million in undiscounted costs under the Boston Lease acquired in the HilleVax acquisition, which expires on December 31, 2032[349]. - There were no credit losses on purchased receivables for the three or nine months ended September 30, 2025; credit losses for the nine months ended September 30, 2024, were $23,000,000[332].
XOMA(XOMAO) - 2025 Q3 - Quarterly Report