Xencor Inc. Files Q3 2024 10-Q

TL;DR

Xencor's Q3 2024 10-Q is in, showing net loss for the year-to-date. Check financials for details.

AI Summary

Xencor Inc. reported its third-quarter results for the period ending September 30, 2024. The company's financial statements show a net loss for the nine months ended September 30, 2024, and the prior year period. Specific financial figures for revenue, net income/loss, and cash flow are not detailed in this header information, but the filing covers the period from January 1, 2024, to September 30, 2024.

Why It Matters

This 10-Q filing provides an update on Xencor's financial performance and operational status for the third quarter of 2024, which is crucial for investors to assess the company's progress and future outlook.

Risk Assessment

Risk Level: medium — Biotech companies like Xencor often face high development costs and regulatory hurdles, making their financial performance inherently volatile.

Key Numbers

• 20240930 — Reporting Period End Date (Indicates the end of the fiscal quarter being reported.)
• 20241106 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 2023-12-31 — Prior Year End Date (Provides a comparison point for financial performance.)

Key Players & Entities

• Xencor Inc. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241106 (date) — Filing date
• PASADENA (location) — City of Xencor's headquarters

FAQ

Key Financial Figures

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

Filing Documents

• xncr-20240930.htm (10-Q) — 1245KB
• xncr-20240930xexx311.htm (EX-31.1) — 10KB
• xncr-20240930xexx312.htm (EX-31.2) — 10KB
• xncr-20240930xexx321.htm (EX-32.1) — 6KB
• 0001326732-24-000060.txt ( ) — 7051KB
• xncr-20240930.xsd (EX-101.SCH) — 45KB
• xncr-20240930_cal.xml (EX-101.CAL) — 78KB
• xncr-20240930_def.xml (EX-101.DEF) — 234KB
• xncr-20240930_lab.xml (EX-101.LAB) — 646KB
• xncr-20240930_pre.xml (EX-101.PRE) — 458KB
• xncr-20240930_htm.xml (XML) — 1018KB

Financial Statements

Financial Statements 5 Consolidated Balance Sheets as of Sept ember 30, 2024 (unaudited) and December 31, 2023 5 Consolidated Statements of Loss for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 7 Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 8 Consolidated Statements of Cash Flows for the Nine Months Ended September 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 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 39 PART II. OTHER INFORMATION 40 Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 5. Other Information 41 Item 6. Exhibits 42

Signatures

Signatures 43 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) September 30, 2024 December 31, 2023 (unaudited) Assets Current assets Cash and cash equivalents $ 29,031 $ 53,790 Marketable debt securities 435,043 497,725 Marketable equity securities 78,903 42,210 Accounts receivable 10,205 11,290 Prepaid expenses and other current assets 20,146 18,145 Total current assets 573,328 623,160 Property and equipment, net 62,400 66,124 Patents, licenses, and other intangible assets, net 17,919 18,663 Restricted cash 385 380 Marketable debt securities - long term 290,274 145,512 Marketable equity securities - long term — 64,210 Right of use (ROU) asset 38,831 33,995 Other assets 498 648 Total assets $ 983,635 $ 952,692 Liabilities and stockholders' equity Current liabilities Accounts payable $ 18,770 $ 13,914 Accrued expenses 25,407 23,564 Income tax payable — 5,782 Lease liabilities 2,181 3,435 Deferred income 37,865 31,682 Debt 7,749 6,332 Total current liabilities 91,972 84,709 Lease liabilities, net of current portion 66,489 59,025 Deferred income, net of current portion 94,107 125,183 Debt, net of current portion 10,169 14,642 Total liabilities 262,737 283,559 Commitments and contingencies Stockholders' equity Preferred stock, $ 0.01 par value: 10,000,000 authorized shares; - 0 - issued and outstanding shares at September 30, 2024 and December 31, 2023 — — Common stock, $ 0.01 par value: 200,000,000 authorized shares at September 30, 2024 and December 31, 2023; 69,963,447 issued and outstanding at September 30, 2024 and 60,998,191 issued and outstanding at December 31, 2023 701 611 Additional paid-in capital 1,364,846 1,131,266 Accumulated other comprehensive income 1,800 1,291 Accumulated deficit ( 643,511 ) ( 464,372 ) Total stockholders' equity attributable to Xencor, Inc. 723,836 668,796 Non-controlling interest ( 2,938 ) 337 Total stockholders' equity 720,898

Notes to Financial Statements

Notes to Financial Statements (unaudited) September 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

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