Mon, Feb 24, 1:05 PM (62 days ago)
In the amended Form 10-Q/A for Xencor, Inc. (XNCR) for the quarter ending March 31, 2024, the company reported significant financial restatements due to errors in accounting for a royalty transaction and tax obligations. Key adjustments included an understatement of accounts receivable by $12.6 million and an overstatement of deferred income by $147.5 million. Revenue for the quarter was reported at $16 million, down from $19 million year-over-year, primarily due to decreased milestone payments. Operating expenses also decreased to $70.7 million from $79.8 million, driven by reduced R&D costs. The net loss attributable to Xencor increased to $73.4 million, compared to $60.8 million in the prior year. Cash used in operating activities rose to $56.9 million. The company reported a cash balance of $646.7 million as of March 31, 2024, down from $697.4 million at year-end 2023. Xencor highlighted ongoing challenges related to internal controls, which contributed to the need for restatements, and is implementing remediation plans to enhance financial reporting accuracy.