OmniAb, Inc.

Previous wording

As of March 31, 2025, we had 95 active partners with 378 active programs using the OmniAb technology platform, including 29 OmniAb-derived antibodies in clinical development by our partners, one under regulatory review, and three approved products developed and commercialized by our partners.

Current wording

As of June 30, 2025, we had 100 active partners with 381 active programs using the OmniAb technology platform, including 28 OmniAb-derived antibodies in clinical development by our partners, one under regulatory review, and three approved products developed and commercialized by our partners.

Previous wording

Active clinical programs and approved products represents the number of unique programs for which an Investigational New Drug Application or equivalent under other regulatory regimes has been filed based on an OmniAb-derived antibody and which are in clinical development by our partners. We continue to count programs as active as long as they are actively being developed, under regulatory review or commercialized. Where the date of such application is not known to us, we use the official start date from clinical trial registries for the purpose of calculating this metric. This number includes approved products separately disclosed in the table above. We view this metric as an indication of our near- and mid-term potential revenue from milestone fees and potential royalty payments in the long term.

Current wording

Active clinical programs and approved products represents the number of unique programs for which an Investigational New Drug Application (“IND”) or equivalent under other regulatory regimes has been filed based on an OmniAb-derived antibody and which are in clinical development by our partners. We continue to count programs as active as long as they are actively being developed, under regulatory review or commercialized. Where the date of such application is not known to us, we use the official start date from clinical trial registries for the purpose of calculating this metric. This number includes approved products separately disclosed in the table above. We view this metric as an indication of our near- and mid-term potential revenue from milestone fees and potential royalty payments in the long term.

Previous wording

Comparison of the Three Months Ended March 31, 2025 and 2024

Current wording

Comparison of the Three and Six Months Ended June 30, 2025 and 2024

Previous wording

•License and milestone revenue fluctuates depending on the timing of new license agreements with partners and partners’ achievement of milestones. Because of these factors and the sporadic nature of development milestones, license and milestone revenue could fluctuate significantly from period to period. License and milestone revenue increased primarily due to the recognition in the current year period of a $1.0 million phase 1 milestone and higher license fees.

Current wording

•License and milestone revenue fluctuates depending on the timing of new license agreements with partners and partners’ achievement of milestones. Because of these factors, license and milestone revenue could fluctuate significantly from period to period. License and milestone revenue decreased primarily due to a $1.8 million decline in milestone revenue.

Previous wording

•Service revenue declined primarily as a result of the discontinuation of certain ion channel research programs.

Current wording

•Service revenue declined primarily as a result of the discontinuation of a small molecule ion channel program and the related acceleration of revenue in the prior year period.

Previous wording

•Research and development expenses consist of (1) personnel related expenses, including salaries, benefits and share-based compensation, (2) external expenses, including third-party costs for goods and services such as lab supplies and contract research, and (3) facility and other overhead expenses, including depreciation and occupancy costs. Research and development expenses decreased primarily due to lower share-based compensation expense and lower external expenses associated with ion channel programs and screening technology development.

Current wording

•Research and development expenses consist of (1) personnel related expenses, including salaries, benefits and share-based compensation, (2) external expenses, including third-party costs for goods and services such as lab supplies and contract research, and (3) facility and other overhead expenses, including depreciation and occupancy costs. Research and development expenses decreased primarily due to lower personnel expenses related to lower share-based compensation expense and lower headcount, and lower external expenses associated with ion channel programs.

Previous wording

•Other operating income, net increased primarily due to a $0.8 million reduction in contingent liabilities attributed to changes in ion channel programs.

Current wording

•Other operating income, net during the six months ended June 30, 2025 includes a gain of $3.0 million from the sale in May 2025 of a small molecule Kv7.2 program to Angelini and a $0.9 million reduction in contingent liabilities attributed to changes in certain ion channel programs, which were partially offset by the $1.0 million contingent liability adjustment associated with the Angelini program. Other operating income, net during the six months ended June 30, 2024 includes a $2.6 million reduction in contingent liabilities primarily attributed to changes in ion channel programs.

Previous wording

Other income (expense), net during the three months ended March 31, 2025 and 2024 primarily related to interest earned on short-term investments. The decline in interest income related to lower short-term investment balances as well as declines in interest rates.

Current wording

Other income (expense), net during the three and six months ended June 30, 2025 and 2024 primarily related to interest earned on short-term investments. The decline in interest income related to lower short-term investment balances as well as declines in interest rates.

Previous wording

Our effective tax rate for the three months ended March 31, 2025 and 2024 differed from the federal statutory tax rate of 21.0% due to share-based compensation expense that is not tax deductible and an increase to our valuation allowance recorded against deferred tax assets, partially offset by the tax benefit from research and development tax credits.

Current wording

Our effective tax rate for each of the three and six months ended June 30, 2025 and 2024 differed from the federal statutory tax rate of 21.0% primarily due to the valuation allowance established on federal and state attributes and the tax impact of stock award activities that was partially offset with the benefit related to research and development tax credits.

Previous wording

As of March 31, 2025, our cash, cash equivalents and short-term investments were $43.6 million. We believe our existing cash, cash equivalents and short-term investments are sufficient to support operations through at least the next 12 months from the date of issuance of these financial statements.

Current wording

As of June 30, 2025, our cash, cash equivalents and short-term investments were $41.6 million. We believe our existing cash, cash equivalents and short-term investments are sufficient to support operations through at least the next 12 months from the date of issuance of these financial statements.

Previous wording

During the three months ended March 31, 2024, cash used in operating activities of $17.0 million primarily reflected our net loss of $19.0 million, changes in our operating assets and liabilities in the amount of $5.5 million, partially offset by net non-cash charges of $7.4 million which primarily included $5.7 million in share-based compensation, and $4.9 million in depreciation and amortization.

Current wording

During the six months ended June 30, 2025, cash used in operating activities of $21.0 million primarily reflected our net loss of $34.1 million, changes in our operating assets and liabilities in the amount of $1.5 million, partially offset by net non-cash charges of $14.6 million which primarily included $8.3 million in share-based compensation, $9.4 million in depreciation and amortization, and a non-cash gain on sale of an ion channel asset of $3.0 million.

Previous wording

During the three months ended March 31, 2025, cash used in operating activities of $15.9 million primarily reflected our net loss of $18.2 million, changes in our operating assets and liabilities in the amount of $5.4 million, partially offset by net non-cash charges of $7.7 million which primarily included $4.1 million in share-based compensation and $4.7 million in depreciation and amortization.

Current wording

During the six months ended June 30, 2024, cash used in operating activities of $29.2 million primarily reflected our net loss of $32.6 million, changes in our operating assets and liabilities in the amount of $11.3 million, partially offset by net non-cash charges of $14.6 million which primarily included $11.1 million in share-based compensation, and $11.1 million in depreciation and amortization.

Previous wording

During the three months ended March 31, 2025, cash used in investing activities primarily consisted of$10.3 million of cash used to purchase short-term investments, partially offset by$9.5 million of proceeds from the maturity of short-term investments.

Current wording

During the six months ended June 30, 2025, cash provided by investing activities primarily consisted of$27.3 million of proceeds from the maturity of short-term investments and $3.0 million of proceeds from the sale of an ion channel asset, partially offset by$18.6 million of cash used to purchase short-term investments.

Previous wording

During the three months ended March 31, 2024, cash provided by in investing activities of$19.9 million primarily consisted of$26.0 million of proceeds from the maturity of short-term investments, partially offset by$5.4 million of cash used to purchase short-term investments and$0.9 millionof cash used to purchase property and equipment.

Current wording

During the six months ended June 30, 2024, cash provided by investing activities of$33.1 million primarily consisted of$50.5 million of proceeds from the maturity of short-term investments and $1.3 million from the sale of short-term investments, partially offset by$16.7 million of cash used to purchase short-term investments and$1.7 millionof cash used to purchase property and equipment.

Previous wording

During the three months ended March 31, 2024, cash used in financing activities was$0.2 million, which primarily consisted of$0.9 million oftaxes paid related to the net share settlement of equity awards and$0.3 million of transaction costs, partially offset by$1.0 million of proceeds from the issuance of common stock from stock plans.

Current wording

During the six months ended June 30, 2024, cash provided by financing activities was$0.6 million, which primarily consisted of$2.1 million of proceeds from the issuance of common stock from stock plans, partially offset by $1.0 million oftaxes paid related to the net share settlement of equity awards and$0.5 million of transaction costs.

Previous wording

There have been no material changes to our critical accounting policies and estimates during the three months ended March 31, 2025, as compared to the critical accounting policies and estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2024 Annual Report.

Current wording

There have been no material changes to our critical accounting policies and estimates during the six months ended June 30, 2025, as compared to the critical accounting policies and estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2024 Annual Report.