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

Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation (Tables)

Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Dividend yield	—	%	—	%	—	%	—	%
Expected volatility	65	%	70	%	65	%	70	%
Risk-free interest rate	4.35	%	3.60	%	4.35	%	3.60	%
Expected term	5.79 years		5.79 years		5.79 years		5.79 years

Schedule of stock option activity


			Weighted		Weighted
			Average		Average		Aggregate
			Exercise		Contractual		Intrinsic
	Number of		Price		Remaining Term		Value
	shares		Per Share		(in years)		(in thousands)
Outstanding as of January 1, 2024		2,730,068	$	20.88		6.29	$	10,638
Granted		34,170		24.71
Exercised		(149,759)		5.82
Forfeited, expired or cancelled		(32,376)		160.48
Outstanding as of June 30, 2024		2,582,103	$	20.06		6.08	$	16,980
Exercisable as of June 30, 2024		2,065,010	$	19.09		5.48	$	15,685

Schedule of grant date fair values of PSUs granted

The range of grant date fair values of the PSUs granted in 2023 was estimated as follows:


						Derived
Hurdle Price		Number of		Fair Value		Service Period
Per PSU		PSUs		Per Share		(in years)
$	30.00		243,550	$	11.42-17.45		0.69-2.59
$	35.00		91,239	$	10.16-16.07		0.93-2.59
$	40.00		60,024	$	9.07-14.84		1.12-2.59
$	45.00		53,787	$	8.12-13.72		1.27-2.59
			448,600

The grant date fair values of the PSUs granted in January 2024 and April 2024 was estimated as follows:


						Derived
Hurdle Price		Number of		Fair Value		Service Period
Per Share		PSUs		Per Share		(in years)
$	30.00		165,900	$	18.42-19.71		0.46-0.74
$	35.00		55,290	$	17.24-17.67		0.66-0.96
$	40.00		34,029	$	15.85-16.14		0.82-1.15
$	45.00		29,781	$	14.20-15.13		0.95-1.31
			285,000

Schedule of performance shares, outstanding activity


			Weighted
			Average
			Grant Date
	Number of		Fair Value
	Unvested PSUs		Per Share
Unvested balance as of January 1, 2024		448,600	$	15.40
Granted		285,000		17.60
Vested		—		—
Forfeited		—		—
Unvested balance as of June 30, 2024		733,600	$	16.26

Summary of stock-based compensation expense

The following table shows total stock-based compensation expense for stock options, PSUs, RSUs and ESPP in the condensed consolidated statements of operations and comprehensive income (loss) (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Total stock-based compensation expense	$	2,690	$	2,163	$	5,546	$	3,733