Xilio Therapeutics(XLO)2025-03-11 12:15Financial Reporting and Compliance - The company is permitted to provide only two years of audited financial statements and reduced disclosures under the JOBS Act [646]. - The company may continue to qualify as a smaller reporting company with less than $100 million in annual revenue, allowing it to avoid certain auditor attestation requirements [649]. - The company has incurred substantial costs due to compliance with public company regulations, including the Sarbanes-Oxley Act and Dodd-Frank Act [652]. - The company is engaged in a process to document and evaluate its internal control over financial reporting, which is both costly and challenging [654]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [791]. Taxation and Financial Impact - Changes in tax laws, including a reduction of the corporate tax rate from 35% to 21%, may adversely affect the company's financial condition [661]. - The Tax Act requires corporations to capitalize and amortize research and development expenditures over five years starting in 2022 [663]. Corporate Governance and Legal Matters - Provisions in the company's corporate charter may discourage or prevent beneficial acquisitions and limit stockholder actions [665]. - The company is governed by Section 203 of the Delaware General Corporation Law, which restricts mergers with stockholders owning over 15% of voting stock for three years [669]. - The company’s restated certificate of incorporation designates Delaware courts as the exclusive forum for certain disputes, potentially increasing litigation costs [670].