XBiotech Inc

For the period ended Mar 31, 2025. Filed May 14, 2025.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed May 14, 2025

XBIT$1.89+1.1%Stored close · as of Nov 6, 2026

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2025

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 001-37347

XBIOTECH INC.

(Exact name of registrant as specified in charter)

British Columbia, Canada	__
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

5217 Winnebago Ln, Austin, TX 78744

(Address of principal executive offices)(Zip Code)

Telephone Number (512)386-2900

(Registrant’s telephone number, including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	XBIT	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company•	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐ No ☒

As of May 14, 2025, there were 30,487,731 shares of the Registrant's common stock issued and outstanding.

XBIOTECH INC.

THREE MONTHS ENDED MARCH 31, 2025

INDEX

PART I—FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements	6
	Condensed Consolidated Balance Sheets as of March 31, 2025 (unaudited) and December 31, 2024	6
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2025 (unaudited) and 2024 (unaudited)	7
	Condensed Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31, 2025 (unaudited) and 2024 (unaudited)	8
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 (unaudited) and 2024 (unaudited)	9
	Notes to Condensed Consolidated Financial Statements (unaudited)	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	18
Item 4.	Controls and Procedures	18
PART II—OTHER INFORMATION
Item 1.	Risk Factors	19
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3.	Defaults Upon Senior Securities	19
Item 4.	Mine Safety Disclosures	19
Item 5.	Other Information	19
Item 6.	Exhibits

SIGNATURES

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements, which reflect our current views with respect to, among other things, our operations and financial performance. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q are forward-looking statements. You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “would,” “could,” “expects,” “plans,” “contemplate,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “intend” or “continue” or the negative of such terms or other comparable terminology, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to inherent risks and uncertainties in predicting future results and conditions that could cause the actual results to differ materially from those projected in these forward-looking statements. These forward-looking statements include, but are not limited to statements about:

●	our ability to obtain regulatory approval to market and sell our product candidates in the United States, Europe and elsewhere;

●	the initiation, timing, cost, progress and success of our research and development programs, preclinical studies and clinical trials for our product candidates;

●	our ability to advance product candidates into, and successfully complete, clinical trials;

●	our ability to successfully commercialize the sale of our product candidates in the United States, Europe and elsewhere;

●	our ability to recruit sufficient numbers of patients for our future clinical trials for our pharmaceutical products;

●	our ability to achieve profitability;

●	the implementation of our business model and strategic plans;

●	our ability to develop and commercialize product candidates for orphan and niche indications independently;

●	our commercialization, marketing and manufacturing capabilities and strategy;

●	our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others;

●	our expectations regarding federal, state and foreign regulatory requirements;

●	the therapeutic benefits, effectiveness and safety of our product candidates;

●	the accuracy of our estimates of the size and characteristics of the markets that may be addressed by our products and product candidates;

●	the rate and degree of market acceptance and clinical utility of our future products, if any;

●	our expectations regarding market risk, including interest rate changes, foreign currency fluctuations and regional or global economic impacts caused by public health threats, such as the outbreak of coronavirus or other infectious diseases;

●	our ability to engage and retain the employees required to grow our business;

●	our future financial performance and projected expenditures;

●	developments relating to our competitors and our industry, including the success of competing therapies that are or become available; and

●	estimates of our expenses, future revenue, capital requirements and our needs for additional financing.

All forward looking statements in this Quarterly Report on Form 10-Q involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, those under the heading “Risk Factors” included in our annual report for the year ended December 31, 2024 filed with the SEC on March 18, 2025, and under the heading “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Quarterly Report on Form 10-Q. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

This Quarterly Report on Form 10-Q also contains estimates, projections and other information concerning our industry, our business, and the markets for certain medical conditions, including data regarding the estimated size of those markets, and the incidence and prevalence of certain medical conditions. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market and other data from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data and similar sources.

Condensed Consolidated Balance Sheets

(in thousands, except share data)

	March 31, 2025 (Unaudited)	December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$155,897	$172,677
Accrued interest receivable	480	700
Income tax receivable	158	158
Prepaid expenses and other current assets	1,150	1,032
Total current assets	157,685	174,567
Property and equipment, net	24,179	24,526
Total assets	$181,864	$199,093
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$1,100	$2,223
Accrued expenses	4,303	2,632
Income tax payable	7	-
Convertible loan, related party	-	10,000
Convertible loan, third party	-	250
Total current liabilities	5,410	15,105
Long-term liabilities:
Income tax payable	1,741	1,720
Total liabilities	7,151	16,825
Shareholders’ equity:
Preferred stock, no par value, unlimited shares authorized, no shares outstanding	-	-
Common stock, no par value, unlimited shares authorized, 30,487,731 shares issued and outstanding at March 31, 2025 and December 31, 2024	276,434	273,105
Accumulated deficit	(101,721)	(90,837)
Total shareholders’ equity	174,713	182,268
Total liabilities and shareholders’ equity	$181,864	$199,093

See accompanying notes to unaudited condensed consolidated financials statements.

Condensed Consolidated Statements of Operations (unaudited)

(in thousands, except share and per share data)

	Three Months Ended March 31,
	2025	2024
	(unaudited)	(unaudited)
Operating expenses:
Research and development	$11,619	$9,825
General and administrative	1,931	1,028
Total operating expenses	13,550	10,853
Loss from operations	(13,550)	(10,853)
Other income :
Interest income	1,504	2,658
Interest expense	(88)	(200)
Other income	995	-
Foreign exchange gain (loss)	284	(1,582)
Total other income	2,695	876
Loss before income taxes	(10,855)	(9,977)
Income tax expense	(29)	(25)
Net loss	$(10,884)	$(10,002)
Net loss per share—basic and diluted	$(0.36)	$(0.33)
Shares used to compute basic and diluted net loss per share	30,487,731	30,443,973

See accompanying notes to unaudited condensed consolidated financials statements.

Condensed Consolidated Statements of Shareholders' Equity (unaudited)

(in thousands)

	Number of Shares	Common Stock Amount	Accumulated Deficit	Total
Balance at December 31, 2024	30,487	$273,105	$(90,837)	$182,268
Net loss	-	-	(10,884)	(10,884)
Share-based compensation expense	-	3,329	-	3,329
Balance at March 31, 2025	30,487	$276,434	$(101,721)	$174,713

	Number of Shares	Common Stock Amount	Accumulated Deficit	Total
Balance at December 31, 2023	30,437	$271,152	$(52,306)	$218,846
Net loss	-	-	(10,002)	(10,002)
Issuance of common stock under stock option plan	14	55	-	55
Share-based compensation expense	-	381	-	381
Balance at March 31, 2024	30,451	$271,588	$(62,308)	$209,280

Condensed Consolidated Statements of Cash Flows (unaudited)

(in thousands)

	Three Months Ended March 31,
	2025	2024
	(unaudited)	(unaudited)
Operating activities
Net loss	$(10,884)	$(10,002)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	442	432
Foreign exchange (gain) loss	(284)	1,582
Share-based compensation expense	3,329	381
Changes in operating assets and liabilities:
Accrued interest receivable	220	(10)
Prepaid expenses and other current assets	(118)	(312)
Accounts payable	(1,125)	8
Accrued expenses	1,671	694
Income tax payable	29	25
Net cash used in operating activities	(6,720)	(7,202)
Investing activities
Purchase of property and equipment	(94)	(255)
Net cash (used in) investing activities	(94)	(255)
Financing activities
(Payment on) proceeds from convertible loan, related party	(10,000)	10,000
Payment on convertible loan, third party	(250)	-
Proceeds from issuance of common stock under stock option plan	-	55
Net cash (used in) provided by financing activities	(10,250)	10,055
Effect of foreign exchange rate on cash and cash equivalents	284	(1,582)
Net change in cash and cash equivalents	(16,780)	1,016
Cash and cash equivalents, beginning of period	172,677	200,023
Cash and cash equivalents, end of period	$155,897	$201,039
Supplemental information:
Accrued purchases of property and equipment	-	82
Cash paid for interest	486	400

See accompanying notes to unaudited condensed consolidated financial statements.

Notes to Condensed Consolidated Financial Statements (Unaudited)

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.