auph-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_____________________________________________

FORM 10-Q

_____________________________________________


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________ to ________________

Commission file number: 001-36421

__________________________________________

Aurinia Pharmaceuticals Inc.

(Exact Name of Registrant as Specified in its Charter)

__________________________________________


Alberta, Canada
(State or other jurisdiction of incorporation or organization)
#140, 14315 - 118 Avenue Edmonton, Alberta T5L 4S6			98-1231763
(Address of principal executive offices)			(I.R.S. Employer Identification Number)

(250) 744-2487

Registrant’s telephone number, including area code

_____________________________________________

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 x No o

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 x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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. o

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

Indicate the number of shares outstanding of each of the registrant's classes of common shares, as of the latest predictable date. As of July 29, 2025, the registrant had 131,629,546 of common shares outstanding.

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


Title of each class	Trading Symbol	Name of exchange on which registered
Common shares, no par value	AUPH	The Nasdaq Global Market LLC

Table of Contents

Page

PART I.

FINANCIAL INFORMATION

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2025 and 2024 (unaudited)

Condensed Consolidated Statements of Shareholders’ Equity for the Three and Six Months Ended June 30, 2025 and 2024 (unaudited)

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (unaudited)

Notes to Condensed Consolidated Financial Statements (unaudited)

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosures

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)


	June 30, 2025		December 31, 2024
	(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	53,002	$	83,433
Short-term investments	262,131		275,043
Accounts receivable, net	40,091		36,544
Inventory, net	46,503		39,228
Prepaid expenses and deposits	6,578		11,219
Other current assets	665		1,129
Total current assets	408,970		446,596
Finance right-of-use lease assets	83,195		92,072
Intangible assets, net	4,046		4,355
Operating right-of-use lease assets	3,837		4,068
Property and equipment, net	2,421		2,731
Other noncurrent assets	93		823
Total assets	$	502,562	$	550,645

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	3,312	$	5,187
Accrued expenses	49,704		64,971
Finance lease liabilities, current portion	16,167		14,046
Deferred revenue	5,499		11,002
Operating lease liabilities, current portion	1,047		1,026
Other current liabilities	2,537		1,531
Total current liabilities	78,266		97,763
Finance lease liabilities, less current portion	59,282		58,554
Deferred revenue, less current portion	12,349		1,699
Deferred compensation and other noncurrent liabilities	12,030		9,408
Operating lease liabilities, less current portion	5,334		5,743
Total liabilities	167,261		173,167
Commitments and contingencies (Note 5)
Shareholders' equity
Common shares - no par value, unlimited shares authorized, 132,668 and 140,883 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively	1,122,582		1,187,696
Additional paid-in capital	105,337		126,999
Accumulated other comprehensive loss	(905)		(647)
Accumulated deficit	(891,713)		(936,570)
Total shareholders' equity	335,301		377,478
Total liabilities and shareholders' equity	$	502,562	$	550,645

See accompanying notes.

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(in thousands, except per share data)


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Revenue
Net product sales	$	66,574	$	55,028	$	126,545	$	103,101
License, collaboration and royalty revenue	3,434		2,164		5,928		4,394
Total revenue	70,008		57,192		132,473		107,495
Operating expenses
Cost of revenue	7,115		8,909		15,689		16,661
Selling, general and administrative	26,018		44,934		46,357		92,629
Research and development	7,432		4,080		13,175		9,631
Restructuring	114		1,072		1,647		7,755
Other expense (income), net	9,246		(290)		13,675		(4,415)
Total operating expenses	49,925		58,705		90,543		122,261
Income (loss) from operations	20,083		(1,513)		41,930		(14,766)
Interest income	3,190		4,189		6,759		8,715
Interest expense	(1,117)		(1,198)		(2,184)		(2,481)
Net income (loss) before income taxes	22,156		1,478		46,505		(8,532)
Income tax expense	643		756		1,648		1,495
Net income (loss)	$	21,513	$	722	$	44,857	$	(10,027)
Other comprehensive income (loss):
Unrealized loss on available-for-sale securities	(80)		(5)		(258)		(129)
Comprehensive income (loss)	$	21,433	$	717	$	44,599	$	(10,156)

Earnings (loss) per share
Basic	$	0.16	$	0.01	$	0.33	$	(0.07)
Diluted	$	0.16	$	0.01	$	0.32	$	(0.07)

Shares used in computing earnings (loss) per share
Basic	134,873		143,327		136,878		143,507
Diluted	137,526		144,110		140,193		143,507

See accompanying notes.

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)



	Common Shares
	Shares	Amount		Additional paid-in capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Shareholders' Equity
Balance at December 31, 2024	140,883	$	1,187,696	$	126,999	$	(647)	$	(936,570)	$	377,478
Purchases of common shares under Share Repurchase Plan	(5,807)	(47,400)		—		—		—		(47,400)
Issuance of common shares from exercise of stock options and vesting of RSUs and performance awards	2,671	22,966		(22,611)		—		—		355
Share-based compensation	—	—		(3,409)		—		—		(3,409)
Unrealized loss on available-for-sale securities	—	—		—		(178)		—		(178)
Net income	—	—		—		—		23,344		23,344
Balance at March 31, 2025	137,747	$	1,163,262	$	100,979	$	(825)	$	(913,226)	$	350,190
Purchases of common shares under Share Repurchase Plan	(5,352)	(43,362)		—		—		—		(43,362)
Issuance of common shares from exercise of stock options and vesting of RSUs	190	2,062		(863)		—		—		1,199
Issuance of common shares under ESPP	83	620		(219)		—		—		401
Share-based compensation	—	—		5,440		—		—		5,440
Unrealized loss on available-for-sale securities	—	—		—		(80)		—		(80)
Net income	—	—		—		—		21,513		21,513
Balance at June 30, 2025	132,668	$	1,122,582	$	105,337	$	(905)	$	(891,713)	$	335,301

See accompanying notes.

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)



	Common Shares
	Shares	Amount		Additional paid in capital		Accumulated Other Comprehensive (Loss) Income		Accumulated Deficit		Total Shareholders' Equity
Balance at December 31, 2023	143,833	$	1,200,218	$	120,788	$	(730)	$	(942,322)	$	377,954
Purchases of common shares under Share Repurchase Plan	(2,374)	(13,370)		—		—		—		(13,370)
Issuance of common shares from exercise of stock options and vesting of RSUs	2,231	21,134		(21,106)		—		—		28
Share-based compensation	—	—		5,737		—		—		5,737
Unrealized loss on available-for-sale securities	—	—		—		(124)				(124)
Net loss	—	—		—		—		$	(10,749)	(10,749)
Balance at March 31, 2024	143,690	$	1,207,982	$	105,419	$	(854)	$	(953,071)	$	359,476
Purchases of common shares under Share Repurchase Plan	(1,050)	(5,249)		—		—		—		(5,249)
Issuance of common shares from exercise of stock options and vesting of RSUs	192	1,773		(1,390)		—		—		383
Issuance of common shares under ESPP	152	1,048		(345)		—		—		703
Shared-based compensation	—	—		8,586		—		—		8,586
Unrealized loss on available-for-sale securities	—	—		—		(5)		—		(5)
Net income	—	—		—		—		722		722
Balance at June 30, 2024	142,984	$	1,205,554	$	112,270	$	(859)	$	(952,349)	$	364,616

See accompanying notes.

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)


	Six Months Ended June 30,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$	44,857	$	(10,027)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Share-based compensation	2,031		14,323
Amortization and depreciation	9,720		9,690
Foreign exchange loss (gain) on revaluation of Monoplant finance lease liability	9,265		(5,705)
Net amortization of premiums and discounts on investments	(5,219)		(6,331)
Other, net	4,132		919
Net changes in operating assets and liabilities:
Accounts receivable, net	(3,547)		(1,433)
Inventory, net	(7,275)		852
Prepaid expenses and other current assets	5,106		(4,305)
Other noncurrent operating assets	730		(12)
Accounts payable	(1,875)		4,088
Accrued expenses and other liabilities	(17,136)		(3,805)
Deferred revenue	5,147		(644)
Lease liabilities	(395)		(365)
Net cash provided by (used in) operating activities	45,541		(2,755)
Cash flows from investing activities:
Proceeds from the sale and maturities of investments	255,285		328,877
Purchases of investments	(237,411)		(318,126)
Purchases of property, equipment and intangible assets	(115)		(140)
Net cash provided by investing activities	17,759		10,611
Cash flows from financing activities:
Repurchase of common shares	(89,485)		(18,435)
Principal portion of finance lease payments	(6,201)		(6,001)
Proceeds from issuance of common shares from exercise of stock options and vesting of RSUs and performance awards	10,590		6,134
Proceeds from issuance of common shares under ESPP	401		703
Taxes paid related to net settlement of exercises of stock options and vesting of RSUs and performance awards	(9,036)		(5,725)
Net cash used in financing activities	(93,731)		(23,324)
Net decrease in cash, cash equivalents and restricted cash	(30,431)		(15,468)
Cash, cash equivalents and restricted cash, beginning of the period	83,433		48,875
Cash, cash equivalents and restricted cash, end of the period	$	53,002	$	33,407
Supplemental cash flow information:
Cash paid for taxes	$	(1,066)	$	(1,459)
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents	$	52,914	$	33,265
Restricted cash	88		142
Total cash, cash equivalents and restricted cash	$	53,002	$	33,407

See accompanying notes.

AURINIA PHARMACEUTICALS INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.Organization and Description of Business

Aurinia Pharmaceuticals Inc. (“Aurinia” or the “Company”) is a biopharmaceutical company focused on delivering therapies to people living with autoimmune diseases with high unmet medical needs. In January 2021, the Company introduced LUPKYNIS® (voclosporin), the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis (“LN”). Aurinia is also developing aritinercept (AUR200), a dual inhibitor of B cell-activating factor (BAFF) and a proliferation-inducing ligand (APRIL) for the potential treatment of autoimmune diseases.

2.Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation, Principles of Consolidation and Use of Estimates

The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures required by U.S. GAAP for annual financial statements have been omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

The accompanying condensed consolidated financial statements include the accounts of Aurinia Pharmaceuticals Inc. and its wholly owned subsidiary, Aurinia Pharma U.S., Inc., a Delaware corporation. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full year or any other future periods.

Summary of Significant Accounting Policies and Recent Accounting Pronouncements

The Company's significant accounting policies and recent accounting pronouncements have not changed from those previously described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board issued final guidance in Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (ASC 740): Improvements to Income Tax Disclosures requiring entities to provide additional information in the rate reconciliation and disclosures about income taxes paid. For public business entities, the new disclosure requirements are effective for annual periods beginning after December 15, 2024, which will be reflected in our consolidated financial statements for the year ended December 31, 2025.

3.Earnings (Loss) Per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding without consideration of potential common shares. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding plus potential common shares. Stock options, performance awards, restricted stock units (“RSUs”) and shares issuable under the Company's Employee Stock Purchase Plan (“ESPP”) are considered potential common shares and are included in the calculation of diluted earnings (loss) per share using the treasury stock method when their effect is dilutive. Potential common shares are excluded from the calculation of diluted earnings (loss) per share when their effect is anti-dilutive.

For the three months ended June 30, 2025, there were 2.6 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 1.6 million RSUs; (ii) 0.5 million performance awards; and (iii) 0.5 million stock options. For the six months ended June 30, 2025, there were 3.3 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 2.2 million RSUs; (ii) 0.6 million performance awards; and (iii) 0.5 million stock options. For each of the three and six months ended June 30, 2025, there were 7.5 million of potential common shares that were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive.

For the three months ended June 30, 2024, there were 0.8 million potential dilutive common shares that were included in the calculation of diluted earnings per share, which consists of: (i) 0.6 million RSUs and (ii) 0.2 million performance awards. For the three and six months ended June 30, 2024, there were 9.8 million and 18.5 million of potential common shares, respectively, that were excluded from the calculation of diluted earnings (loss) per share because their effect was anti-dilutive.

4. Balance Sheet Details

Fair Value Measurement

The following table summarizes the financial assets measured at fair value on a recurring basis (in thousands):


	June 30, 2025
	Level 1		Level 2		Level 3		Total
Cash, cash equivalents and restricted cash	$	53,002	$	—	$	—	$	53,002
U.S. treasury bills	—		248,608		—		248,608
U.S. treasury bonds	—		11,834		—		11,834
Commercial paper	—		1,489		—		1,489
Corporate bonds	—		200		—		200
Total	$	53,002	$	262,131	$	—	$	315,133


	December 31, 2024
	Level 1		Level 2		Level 3		Total
Cash, cash equivalents and restricted cash	$	83,433	$	—	$	—	$	83,433
U.S. treasury bills	—		192,101		—		192,101
U.S. treasury bonds	—		81,402		—		81,402
Commercial paper	—		1,339		—		1,339
Corporate bonds	—		201		—		201
Total	$	83,433	$	275,043	$	—	$	358,476

The fair value of the Company’s investments classified within Level 2 is based upon observable inputs that may include benchmark yield curves, reported trades, issuer spreads, benchmark securities and reference data including market research publications.

The carrying amount and related unrealized gains (losses) by type of investment consisted of the following (in thousands):


	June 30, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash, cash equivalents and restricted cash	$	53,002	$	—	$	—	$	53,002
U.S. treasury bills	248,701		—		(93)		248,608
U.S. treasury bonds	11,841		—		(7)		11,834
Commercial paper	1,489		—		—		1,489
Corporate bonds	200		—		—		200
Total cash, cash equivalents, restricted cash and short-term investments	$	315,233	$	—	$	(100)	$	315,133

	December 31, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash, cash equivalents and restricted cash	$	83,433	$	—	$	—	$	83,433
U.S. treasury bills	192,054		47		—		192,101
U.S. treasury bonds	81,292		110		—		81,402
Commercial paper	1,339		—		—		1,339
Corporate bonds	200		1		—		201
Total cash, cash equivalents, restricted cash and short-term investments	$	358,318	$	158	$	—	$	358,476

As of June 30, 2025 and December 31, 2024, accrued interest receivable from investments was $0.3 million and $0.6 million, respectively, which was included in other current assets on the condensed consolidated balance sheets. As of June 30, 2025, short-term investments mature at various dates through January 2026. As of June 30, 2025 and December 31, 2024, no allowance for credit losses was recorded.

Inventory, net

Inventory, net consisted of the following (in thousands):


	June 30, 2025		December 31, 2024
Raw materials	$	771	$	1,702
Work in process	43,165		36,623
Finished goods	2,567		903
Total inventory, net	$	46,503	$	39,228

As of June 30, 2025 and December 31, 2024, inventory reserves were nil.

Prepaid Expenses and Deposits

Prepaid expenses and deposits consisted of the following (in thousands):

June 30, 2025

December 31, 2024

Prepaid manufacturing and other deposits

SEC Form 10-Q filed by Aurinia Pharmaceuticals Inc