Mon, Feb 24, 1:09 PM (55 days ago)
Xencor, Inc. (XNCR) filed an amendment to its Form 10-Q for the quarter ended September 30, 2024, reflecting significant restatements due to accounting errors related to the Ultomiris Royalty Sale Agreement and tax obligations. The restatement led to a $132 million overstatement in deferred income and a $154.9 million understatement in debt, impacting cash flow and profit metrics. For the quarter, Xencor reported revenues of $17.8 million, down from $59.2 million in the prior year, largely due to decreased royalty and milestone revenues. Operating expenses decreased slightly to $73 million, resulting in a net loss of $47.4 million compared to $24.2 million the previous year. Cash used in operating activities rose to $152.4 million, while financing activities generated $192.7 million from a public offering. The company ended the period with $754.7 million in cash and marketable securities. Xencor acknowledged material weaknesses in internal controls over financial reporting, prompting a commitment to enhance oversight and compliance. Future operations might be influenced by ongoing clinical developments and regulatory approvals, alongside the resolution of identified weaknesses in financial reporting.