approval, our third-party licensees will not be able to market them. Other potential risks to XOMA Royalty meeting these expectations are described in more detail in XOMA Royalty's most recent filing on Form 10-Q and in other filings with the Securities and Exchange Commission. Consider such risks carefully when considering XOMA Royalty's prospects. Any forward-looking statement in this press release represents XOMA Royalty's beliefs and assumptions only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. XOMA Royalty disclaims any obligation to update any forward-looking statement, except as required by applicable law.
EXPLANATORY NOTE: Any references to "portfolio" in this press release refer strictly to milestone and/or royalty rights associated with a basket of drug products in development. Any references to "assets" in this press release refer strictly to milestone and/or royalty rights associated with individual drug products in development.
As of the date of this press release, the commercial assets in XOMA Royalty's milestone and royalty portfolio are VABYSMO$(R)$ (faricimab-svoa), OJEMDA$(TM)$ (tovorafenib), MIPLYFFA(TM) (arimoclomol), XACIATO(TM) (clindamycin phosphate) vaginal gel 2%, IXINITY(R) [coagulation factor IX (recombinant)], and DSUVIA(R) (sufentanil sublingual tablet). All other assets in the milestone and royalty portfolio are investigational compounds. Efficacy and safety have not been established. There is no guarantee that any of the investigational compounds will become commercially available.
XOMA ROYALTY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Income and revenues:
Income from
purchased
receivables $ 6,463 $ -- $ 11,895 $ --
Revenue from
contracts with
customers 25 225 6,050 1,350
Revenue recognized
under
units-of-revenue
method 709 605 1,828 1,575
Total income
and revenues 7,197 830 19,773 2,925
------- ------ ------- -------
Operating expenses:
Research and
development 817 25 2,011 118
General and
administrative 8,020 6,368 27,485 18,341
Royalty purchase
agreement asset
impairment 14,000 -- 23,000 1,575
Arbitration
settlement costs -- -- -- 4,132
Amortization of
intangible
assets -- 224 -- 673
Total operating
expenses 22,837 6,617 52,496 24,839
------- ------ ------- -------
Loss from
operations (15,640) (5,787) (32,723) (21,914)
Other income
(expense):
Gain on the
acquisition of
Kinnate -- -- 19,316 --
Change in fair
value of
embedded
derivative
related to
RPA -- -- 8,100 --
Interest
expense (3,493) -- (10,446) --
Other income
(expense),
net 1,890 278 5,900 1,192
------- ------ ------- -------
Net loss $(17,243) $(5,509) $ (9,853) $(20,722)
======= ====== ======= =======
Net loss attributable
to common
stockholders, basic $(18,611) $(6,877) $(13,957) $(24,826)
======= ====== ======= =======
Basic net loss per
share attributable
to common
stockholders $ (1.59) $ (0.60) $ (1.20) $ (2.17)
======= ====== ======= =======
Weighted average
shares used in
computing basic net
loss per share
attributable to
common stockholders 11,712 11,473 11,645 11,466
======= ====== ======= =======
Net loss attributable
to common
stockholders,
diluted $(18,611) $(6,877) $(13,957) $(24,826)
======= ====== ======= =======
Diluted net loss per
share attributable
to common
stockholders $ (1.59) $ (0.60) $ (1.20) $ (2.17)
======= ====== ======= =======
Weighted average
shares used in
computing diluted
net loss per share
attributable to
common stockholders 11,712 11,473 11,645 11,466
======= ====== ======= =======
XOMA ROYALTY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
September 30, December 31,
2024 2023
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 142,050 $ 153,290
Short-term restricted cash 80 160
Short-term equity securities 785 161
Trade and other receivables, net 1,045 1,004
Short-term royalty and commercial
payment receivables 12,682 14,215
Prepaid expenses and other current
assets 2,379 483
---------- ----------
Total current assets 159,021 169,313
Long-term restricted cash 4,686 6,100
Property and equipment, net 34 25
Operating lease right-of-use assets 335 378
Long-term royalty and commercial
payment receivables 54,207 57,952
Exarafenib milestone asset 3,125 --
Other assets - long term 1,932 533
Total assets $ 223,340 $ 234,301
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,131 $ 653
Accrued and other liabilities 2,451 2,768
Contingent consideration under
RPAs, AAAs, and CPPAs 4,000 7,000
Operating lease liabilities 434 54
Unearned revenue recognized under
units-of-revenue method 1,924 2,113
Preferred stock dividend accrual 1,368 1,368
Current portion of long-term debt 9,826 5,543
Total current liabilities 21,134 19,499
Unearned revenue recognized under
units-of-revenue method --
long-term 5,589 7,228
Exarafenib milestone contingent
consideration 3,125 --
Long-term operating lease liabilities 594 335
Long-term debt 108,089 118,518
Total liabilities 138,531 145,580
---------- ----------
Stockholders' equity:
Preferred Stock, $0.05 par value,
1,000,000 shares authorized:
8.625% Series A cumulative,
perpetual preferred stock, 984,000
shares issued and outstanding at
September 30, 2024 and December
31, 2023 49 49
8.375% Series B cumulative,
perpetual preferred stock, 1,600
shares issued and outstanding at
September 30, 2024 and December
31, 2023 -- --
Convertible preferred stock, 5,003
issued and outstanding at
September 30, 2024 and December
31, 2023 -- --
Common stock, $0.0075 par value,
277,333,332 shares authorized,
11,755,223 and 11,495,492 shares
issued and outstanding at
September 30, 2024 and December
31, 2023, respectively 88 86
Additional paid-in capital 1,317,657 1,311,809
Accumulated other comprehensive
income 104 --
Accumulated deficit (1,233,089) (1,223,223)
---------- ----------
Total stockholders' equity 84,809 88,721
---------- ----------
Total liabilities and
stockholders' equity $ 223,340 $ 234,301
========== ==========
XOMA ROYALTY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Nine Months Ended
September 30,
2024 2023
Cash flows from operating activities:
Net loss $ (9,853) $(20,722)
Adjustments to reconcile net loss to net
cash used in operating activities:
Income from purchased receivables under
effective interest rate method (9,985) --
Stock-based compensation expense 8,136 6,450
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