Xencor Inc. Files Q2 2024 10-Q Report

TL;DR

Xencor's Q2 2024 10-Q is in. Check the balance sheet for the latest numbers.

AI Summary

Xencor Inc. reported its quarterly results for the period ending June 30, 2024. The company's financial statements indicate various balance sheet items and changes over the reporting periods. Specific financial figures and operational details are presented within the filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance and position of Xencor Inc., crucial for understanding the company's health and future prospects.

Risk Assessment

Risk Level: medium — As a pharmaceutical company, Xencor faces inherent risks related to drug development, regulatory approvals, and market competition.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is reported.)
• 20240805 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• Xencor Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240805 (date) — Filing date of the report
• Pasadena, CA (location) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share XNCR The Nasdaq Global Marke

Filing Documents

• xncr-20240630.htm (10-Q) — 1220KB
• xncr-20240630xexx101.htm (EX-10.1) — 79KB
• xncr-20240630xexx102.htm (EX-10.2) — 7KB
• xncr-20240630xexx311.htm (EX-31.1) — 10KB
• xncr-20240630xexx312.htm (EX-31.2) — 10KB
• xncr-20240630xexx321.htm (EX-32.1) — 6KB
• 0001326732-24-000043.txt ( ) — 7084KB
• xncr-20240630.xsd (EX-101.SCH) — 46KB
• xncr-20240630_cal.xml (EX-101.CAL) — 75KB
• xncr-20240630_def.xml (EX-101.DEF) — 233KB
• xncr-20240630_lab.xml (EX-101.LAB) — 638KB
• xncr-20240630_pre.xml (EX-101.PRE) — 452KB
• xncr-20240630_htm.xml (XML) — 1016KB

Financial Statements

Financial Statements 5 Consolidated Balance Sheets as of June 3 0 , 2024 (unaudited) and December 31, 2023 5 Consolidated Statements of Loss for the Three and Six Months Ended June 30 , 2024 and 2023 (unaudited) 6 Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended J une 30 , 2024 and 2023 (unaudited) 7 Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30 , 2024 and 2023 (unaudited) 8 Consolidated Statements of Cash Flows for the S ix Months Ended June 30 , 2024 and 2023 (unaudited) 9

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37 PART II. OTHER INFORMATION 39 Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 5. Other Information 39 Item 6. Exhibits 40

Signatures

Signatures 41 In this report, unless otherwise stated or the context otherwise indicates, references to "Xencor," "the Company," "we," "us," "our" and similar references refer to Xencor, Inc. The Xencor logo is a registered trademark of Xencor, Inc. This report also contains registered marks, trademarks, and trade names of other companies. All other trademarks, registered marks and trade names appearing in this report are the property of their respective holders. 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). You should not place undue reliance on these statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth below under Part II, Item 1A, "Risk Factors" in this Quarterly Report. These statements, which represent our current expectations or beliefs concerning various future events, may contain words such as "

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Xencor, Inc. Consolidated Balance Sheets (in thousands, except share and per share data) June 30, 2024 December 31, 2023 (unaudited) Assets Current assets Cash and cash equivalents $ 30,768 $ 53,790 Marketable debt securities 449,372 497,725 Marketable equity securities 28,271 42,210 Accounts receivable 22,073 11,290 Prepaid expenses and other current assets 23,986 18,145 Total current assets 554,470 623,160 Property and equipment, net 63,868 66,124 Patents, licenses, and other intangible assets, net 18,778 18,663 Restricted cash 384 380 Marketable debt securities - long term 104,862 145,512 Marketable equity securities - long term 43,780 64,210 Right of use (ROU) asset 39,527 33,995 Other assets 498 648 Total assets $ 826,167 $ 952,692 Liabilities and stockholders' equity Current liabilities Accounts payable $ 15,838 $ 13,914 Accrued expenses 19,557 23,564 Income tax payable — 5,782 Lease liabilities 1,262 3,435 Deferred income 36,472 31,682 Debt 6,947 6,332 Total current liabilities 80,076 84,709 Lease liabilities, net of current portion 67,156 59,025 Deferred income, net of current portion 104,081 125,183 Debt, net of current portion 12,313 14,642 Total liabilities 263,626 283,559 Commitments and contingencies Stockholders' equity Preferred stock, $ 0.01 par value: 10,000,000 authorized shares; - 0 - issued and outstanding shares at June 30, 2024 and December 31, 2023 — — Common stock, $ 0.01 par value: 200,000,000 authorized shares at June 30, 2024 and December 31, 2023; 61,766,054 issued and outstanding at June 30, 2024 and 60,998,191 issued and outstanding at December 31, 2023 619 611 Additional paid-in capital 1,162,726 1,131,266 Accumulated other comprehensive (loss) income ( 652 ) 1,291 Accumulated deficit ( 598,368 ) ( 464,372 ) Total stockholders' equity attributable to Xencor, Inc. 564,325 668,796 Non-controlling interest ( 1,784 ) 337 Total stockholders' equity 562,541 669,1

Notes to Financial Statements

Notes to Financial Statements (unaudited) June 30, 2024 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated interim financial statements for Xencor, Inc. (the Company, Xencor, we or us) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of consolidated interim financial statements requires the use of management's estimates and assumptions that affect reported amounts of assets and liabilities at the date of the consolidated interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited consolidated interim financial statements and related notes should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 29, 2024. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Xencor, Inc. and Gale Therapeutics Inc. (Gale), a variable interest entity (VIE) in which we are the primary beneficiary. Since we own less than 100% of Gale, the Company records net loss attributable to non-controlling interests in its consolidated statements of loss equal to the percentage of the economic or ownership interests retained in Gale by the non-controlling party. In determining whether we are the primary beneficiary of a VIE, we apply a qualitative approach that determines whether we have (1) the powe

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