Restatement of Previously Issued Financial Statements (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The impact of the restatement on the consolidated balance sheet as of September 30, 2024 is as follows (in thousands):

	September 30, 2024
	(unaudited)
Assets
Accounts receivable	10,205		15,667		25,872
Prepaid expenses and other current assets	20,146		602		20,748
Total current assets	573,328		16,269		589,597
Total assets	$	983,635	$	16,269	$	999,904
Liabilities and stockholders’ equity
Current liabilities
Deferred income	37,865		(37,865)		—
Debt	7,749		36,706		44,455
Total current liabilities	91,972		(1,159)		90,813
Uncertain tax position payable	—		8,336		8,336
Deferred income, net of current portion	94,107		(94,107)		—
Debt, net of current portion	10,169		118,171		128,340
Total liabilities	262,737		31,241		293,978
Stockholders’ equity
Accumulated deficit	(643,511)		(14,972)		(658,483)
Total stockholders’ equity	720,898		(14,972)		705,926
Total liabilities and stockholders’ equity	$	983,635	$	16,269	$	999,904

The impact of the restatement on the consolidated statements of loss for the three months ended September 30, 2024 is as follows (in thousands):

	Three Months Ended September 30, 2024
	As Reported		Adjustment		As Restated
Revenue
Collaborations, milestones, and royalties	$	10,710	$	7,086	$	17,796
Loss from operations	(62,283)		7,086		(55,197)
Other income (expense)
Interest expense	(795)		(8,231)		(9,026)
Loss before income tax expense	(46,297)		(1,145)		(47,442)
Income tax expense	—		—		—
Net loss	(46,297)		(1,145)		(47,442)
Net loss attributable to non-controlling interest	(1,154)		—		(1,154)
Net loss attributable to Xencor, Inc.	(45,143)		(1,145)		(46,288)
Basic and diluted net loss per common share attributable to Xencor, Inc.	$	(0.71)	$	(0.01)	$	(0.72)

The impact of the restatement on the consolidated statement of loss for the nine months ended September 30, 2024 is as follows (in thousands):

	Nine Months Ended September 30, 2024
	As Reported		Adjustment		As Restated
Revenue
Collaborations, milestones, and royalties	$	40,475	$	17,225	$	57,700
Loss from operations	(182,455)		17,225		(165,230)
Other income (expense)
Interest expense	(2,716)		(25,268)		(27,984)
Loss before income tax expense	(182,297)		(8,043)		(190,340)
Income tax expense	117		(117)		—
Net loss	(182,414)		(7,926)		(190,340)
Net loss attributable to non-controlling interest	(3,275)		—		(3,275)
Net loss attributable to Xencor, Inc.	$	(179,139)	$	(7,926)	$	(187,065)
Basic and diluted net loss per common share attributable to Xencor, Inc.	$	(2.87)	$	(0.13)	$	(3.00)

The impact of the restatement on the consolidated statements of comprehensive loss for the three months ended September 30, 2024 is as follows (in thousands):

	Three Months Ended September 30, 2024
	As Reported		Adjustment		As Restated
Net loss	(46,297)		(1,145)		(47,442)
Other comprehensive income
Net unrealized gain on marketable debt securities	2,452		—		2,452
Comprehensive loss	(43,845)		(1,145)		(44,990)
Comprehensive loss attributable to non-controlling interest	(1,154)		—		(1,154)
Comprehensive loss attributable to Xencor, Inc.	$	(42,691)	$	(1,145)	$	(43,836)

The impact of the restatement on the consolidated statement of comprehensive loss for the nine months ended September 30, 2024 is as follows (in thousands):

	Nine Months Ended September 30, 2024
	As Reported		Adjustment		As Restated
Net loss	(182,414)		(7,926)		(190,340)
Other comprehensive income
Net unrealized gain on marketable debt securities	510		—		510
Comprehensive loss	(181,904)		(7,926)		(189,830)
Comprehensive loss attributable to non-controlling interest	(3,275)		—		(3,275)
Comprehensive loss attributable to Xencor, Inc.	$	(178,629)	$	(7,926)	$	(186,555)

The impact of the restatement on the consolidated statements of cash flows for the nine months ended September 30, 2024 is as follows (in thousands):

	Nine Months Ended September 30, 2024
	As Reported		Adjustment		As Restated
Cash flows from operating activities
Net loss	$	(182,414)	$	(7,926)	$	(190,340)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash royalty revenue related to sale of future royalties	—		(48,646)		(48,646)
Non-cash interest expense	2,682		25,268		27,950
Changes in operating assets and liabilities:
Accounts receivable	1,085		790		1,875
Income taxes	(5,782)		(117)		(5,899)
Deferred income	(24,893)		24,893		—
Net cash used in operating activities	(146,613)		(5,738)		(152,351)
Cash flows from financing activities
Reduction of liability for sale of future royalties	(5,738)		5,738		—
Net cash provided by financing activities	186,983		5,738		192,721