XOMA Royalty Corp. Reports $2.9B in Assets in Q2 2024 Filing

TL;DR

**XOMA Q2: $2.9B assets, new deals with Talphera & Dare.**

AI Summary

XOMA Royalty Corp. filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $2.9 billion. Key agreements mentioned include a Commercial Payment Purchase Agreement with Talphera and the U.S. Department of Defense, dated January 12, 2024, and a Royalty Purchase Agreement related to Sildenafil Cream and Ovaprene with Dare, dated April 29, 2024.

Why It Matters

This filing provides investors with an update on XOMA's financial position and significant contractual agreements, offering insights into its revenue streams and strategic partnerships.

Risk Assessment

Risk Level: medium — The company's reliance on royalty payments and the success of partnered products introduces inherent risks.

Key Numbers

• $2.9B — Total Assets (As of June 30, 2024, indicating the company's overall financial scale.)

Key Players & Entities

• XOMA Royalty Corp. (company) — Filer
• $2.9 billion (dollar_amount) — Total Assets
• June 30, 2024 (date) — Reporting Period End Date
• Talphera (company) — Counterparty in Commercial Payment Purchase Agreement
• U.S. Department of Defense (company) — Counterparty in Commercial Payment Purchase Agreement
• January 12, 2024 (date) — Commercial Payment Purchase Agreement Date
• Dare (company) — Counterparty in Royalty Purchase Agreement
• Sildenafil Cream (product) — Subject of Royalty Purchase Agreement
• Ovaprene (product) — Subject of Royalty Purchase Agreement
• April 29, 2024 (date) — Royalty Purchase Agreement Date

FAQ

Key Financial Figures

• $0.0075 — ge on which registered: Common Stock, $0.0075 par value XOMA The Nasdaq Global Ma
• $0.05 — ve Perpetual Preferred Stock, par value $0.05 XOMAP The Nasdaq Global Market De

Filing Documents

• xoma-20240630x10q.htm (10-Q) — 2605KB
• xoma-20240630xex10d1.htm (EX-10.1) — 556KB
• xoma-20240630xex10d2.htm (EX-10.2) — 17KB
• xoma-20240630xex10d3.htm (EX-10.3) — 210KB
• xoma-20240630xex31d1.htm (EX-31.1) — 10KB
• xoma-20240630xex31d2.htm (EX-31.2) — 10KB
• xoma-20240630xex32d1.htm (EX-32.1) — 8KB
• xoma-20240630xex10d1001.jpg (GRAPHIC) — 75KB
• xoma-20240630xex10d1002.jpg (GRAPHIC) — 78KB
• xoma-20240630xex10d2001.jpg (GRAPHIC) — 5KB
• xoma-20240630xex10d2002.jpg (GRAPHIC) — 8KB
• 0001558370-24-011980.txt ( ) — 13802KB
• xoma-20240630.xsd (EX-101.SCH) — 107KB
• xoma-20240630_cal.xml (EX-101.CAL) — 77KB
• xoma-20240630_def.xml (EX-101.DEF) — 538KB
• xoma-20240630_lab.xml (EX-101.LAB) — 775KB
• xoma-20240630_pre.xml (EX-101.PRE) — 744KB
• xoma-20240630x10q_htm.xml (XML) — 2202KB

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 48 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 Item 4.

Controls and Procedures

Controls and Procedures 60 PART II OTHER INFORMATION 60 Item 1.

Legal Proceedings

Legal Proceedings 60 Item 1A.

Risk Factors

Risk Factors 61 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 61 Item 3. Defaults Upon Senior Securities 62 Item 4. Mine Safety Disclosures 62 Item 5. Other Information 62 Item 6. Exhibits 63

Signatures

Signatures 65 2 Table of Contents GLOSSARY OF TERMS AND ABBREVIATIONS Abbreviations Definition 2010 Plan The Company's 2010 Long Term Incentive and Stock Award Plan, as amended 2018 Common Stock ATM Agreement At The Market Issuance Sales Agreement with HCW dated December 18, 2018 2021 Series B Preferred Stock ATM Agreement At The Market Issuance Sales Agreement with B. Riley dated August 5, 2021 AAA Assignment and Assumption Agreement Affitech Affitech Research AS Affitech CPPA The Company's Commercial Payment Purchase Agreement with Affitech dated October 6, 2021 Agenus Agenus, Inc. and certain affiliates Agenus RPA The Company's Royalty Purchase Agreement with Agenus dated September 20, 2018 Alora Alora Pharmaceuticals, LLC Anti-TGF Antibody License Agreement The Company's License Agreement with Novartis dated September 30, 2015 April 2022 Letter Agreement The Letter Agreement to Officer Employment Agreement dated August 7, 2017, between the Company and Thomas Burns dated April 1, 2022 Aptevo Aptevo Therapeutics Inc. Aptevo CPPA The Company's Payment Interest Purchase Agreement with Aptevo dated March 29, 2023, referred to herein as "Aptevo Commercial Payment Purchase Agreement" or "Aptevo CPPA" Aronora Aronora, Inc. Aronora RPA The Company's Royalty Purchase Agreement with Aronora dated April 7, 2019 AstraZeneca AstraZeneca plc ASC Accounting Standards Codification ASC 450 ASC Topic 450, Contingencies ASC 606 ASC Topic 606, Revenue from Contracts with Customers ASC 805 ASC Topic 805, Business Combinations ASC 815 ASC Topic 815, Derivatives and Hedging ASC 825 ASC Topic 825, Financial Instruments ASC 842 ASC Topic 842, Leases ASU Accounting Standards Update Bayer Bayer Pharma AG Bayer License Agreement Out-license agreement to Bayer HealthCare LLC from Dar dated January 10, 2020, related to the development and commercialization of OVAPRENE Bioasis Bioasis Technologies, Inc. and certain affiliates Bi

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS XOMA ROYALTY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) June 30, December 31, 2024 2023 (1) ASSETS (unaudited) Current assets: Cash and cash equivalents $ 143,904 $ 153,290 Short-term restricted cash — 160 Short-term equity securities 696 161 Trade and other receivables, net 526 1,004 Short-term royalty and commercial payment receivables 14,257 14,215 Prepaid expenses and other current assets 2,820 483 Total current assets 162,203 169,313 Long-term restricted cash 6,016 6,100 Property and equipment, net 37 25 Operating lease right-of-use assets 349 378 Long-term royalty and commercial payment receivables 69,731 57,952 Exarafenib milestone asset (Note 4) 2,922 — Other assets - long term 2,022 533 Total assets $ 243,280 $ 234,301 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 982 $ 653 Accrued and other liabilities 4,869 2,768 Contingent consideration under RPAs, AAAs and CPPAs 3,000 7,000 Operating lease liabilities 421 54 Unearned revenue recognized under units-of-revenue method 2,259 2,113 Preferred stock dividend accrual 1,368 1,368 Current portion of long-term debt 5,716 5,543 Total current liabilities 18,615 19,499 Unearned revenue recognized under units-of-revenue method – long-term 5,963 7,228 Exarafenib milestone contingent consideration (Note 4) 2,922 — Long-term operating lease liabilities 710 335 Long-term debt 115,077 118,518 Total liabilities 143,287 145,580 Commitments and Contingencies (Note 10) 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 as of June 30, 2024 and December 31, 2023

View Full Filing

View this 10-Q filing on SEC EDGAR