XOMA Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events	9 Months Ended
Sep. 30, 2020
Subsequent Events
Subsequent Events	14. Subsequent Events On October 9, 2020, Rezolute completed a private placement of its equity securities with gross proceeds of $41.0 million, which is considered a Qualified Financing event under the Third Amendment. The Qualified Financing resulted in acceleration of the remaining receivables of $1.4 million due from Rezolute, and the Company received the entire amount in October 2020. The Company reassessed the collectability of the outstanding receivables and determined that the bad debt allowance of $1.4 million remained appropriate as of September 30, 2020, as the Company assessed that the financing was not probable as of the balance sheet date and as such the Company continued to have an incurred loss with respect to the collection of the remaining receivable. The Company will recognize the $1.4 million as a reversal of bad debt expense in the fourth quarter of 2020. On October 21, 2020, NIS793, an anti-TGFβ monoclonal antibody, licensed from the Company to Novartis International under the License Agreement, advanced to the Phase 2 development stage. As a result of the advancement, Novartis International achieved a clinical development milestone pursuant to the License Agreement, and the Company earned a $25.0 million milestone payment. As specified under the terms the License Agreement, the Company will receive $17.7 million in cash and the remaining balance of $7.3 million will be recognized as a reduction to the Company’s debt obligation to Novartis. The Company will record $25.0 million as revenue from contracts with customers in the consolidated statement of operations and comprehensive income (loss) in the fourth quarter of 2020. On November 2, 2020, the Company exercised its option previously granted under the Bioasis Royalty Purchase Agreement and entered into another Royalty Purchase Agreement (the “Second Bioasis Royalty Purchase Agreement”) with Bioasis. Under the Second Bioasis Royalty Purchase Agreement, the Company purchased potential future milestone and other payments, and royalty rights from Bioasis for product candidates that are being developed pursuant to a Research Collaboration and License Agreement between Bioasis and Chiesi Farmaceutici S.p.A. (“Chiesi”). The Company paid Bioasis $1.2 million upon closing of the Second Bioasis Royalty Purchase Agreement for the purchased rights.

Subsequent Events

9 Months Ended

Sep. 30, 2020

14. Subsequent Events

On October 9, 2020, Rezolute completed a private placement of its equity securities with gross proceeds of $41.0 million, which is considered a Qualified Financing event under the Third Amendment. The Qualified Financing resulted in acceleration of the remaining receivables of $1.4 million due from Rezolute, and the Company received the entire amount in October 2020. The Company reassessed the collectability of the outstanding receivables and determined that the bad debt allowance of $1.4 million remained appropriate as of September 30, 2020, as the Company assessed that the financing was not probable as of the balance sheet date and as such the Company continued to have an incurred loss with respect to the collection of the remaining receivable. The Company will recognize the $1.4 million as a reversal of bad debt expense in the fourth quarter of 2020.

On October 21, 2020, NIS793, an anti-TGFβ monoclonal antibody, licensed from the Company to Novartis International under the License Agreement, advanced to the Phase 2 development stage. As a result of the advancement, Novartis International achieved a clinical development milestone pursuant to the License Agreement, and the Company earned a $25.0 million milestone payment. As specified under the terms the License Agreement, the Company will receive $17.7 million in cash and the remaining balance of $7.3 million will be recognized as a reduction to the Company’s debt obligation to Novartis. The Company will record $25.0 million as revenue from contracts with customers in the consolidated statement of operations and comprehensive income (loss) in the fourth quarter of 2020.

On November 2, 2020, the Company exercised its option previously granted under the Bioasis Royalty Purchase Agreement and entered into another Royalty Purchase Agreement (the “Second Bioasis Royalty Purchase Agreement”) with Bioasis. Under the Second Bioasis Royalty Purchase Agreement, the Company purchased potential future milestone and other payments, and royalty rights from Bioasis for product candidates that are being developed pursuant to a Research Collaboration and License Agreement between Bioasis and Chiesi Farmaceutici S.p.A. (“Chiesi”). The Company paid Bioasis $1.2 million upon closing of the Second Bioasis Royalty Purchase Agreement for the purchased rights.