Exicure, Inc. Enters into Purchase Agreements for $1.3 Million and $8.7 Million Equity Financing and Reports Third Quarter 2024 Financial Results
Equity Financing
In an agreement dated November 6, 2024 and executed on November 12, 2024, the Company agreed to sell and issue to HiTron Systems Inc. (“HiTron”) 433,333 shares of common stock, par value
Upon closing of the initial
Request for Subsequent Extension to Nasdaq Hearings Panel
As previously disclosed, the Nasdaq Hearings Panel granted an extension through November 14, 2024 to continue the Company’s listing subject to the Company evidencing compliance with all applicable criteria for continued listing on The Nasdaq Capital Market. As of September 30, 2024, the Company did not meet the continued listing requirement related to stockholders’ equity, primarily due to the litigation accrual described below. However, the Company believes it will be in pro forma compliance with the stockholders’ equity requirement once the
Third Quarter 2024 Financial Results
Cash Position: Cash and cash equivalents were
General and Administrative (G&A) Expense: General and administrative expenses were
Litigation legal expense: The increase of
Other Income: The Company will receive gross proceeds of
Net Loss: The Company had a net loss of
Going Concern: Management believes that the Company’s existing cash and cash equivalents is not sufficient to continue to fund operations. The Company has already engaged in significant cost reductions, so our ability to further cut costs and extend the Company’s operating runway is limited. As a result, substantial additional financing is needed in very near term to pay expenses, fund the ongoing exploration of strategic alternatives and pursue any alternatives that may be identified. The Company needs to raise capital to fund its operations. There can be no assurance that such additional financing will be available and, if available, can be obtained on acceptable terms.
About Exicure
Exicure, Inc. has historically been an early-stage biotechnology company focused on developing nucleic acid therapies targeting ribonucleic acid against validated targets. Following its recent restructuring and suspension of clinical and development activities, the Company is exploring strategic alternatives to maximize stockholder value, both with respect to its historical biotechnology assets and more broadly. For further information, see www.exicuretx.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical fact may be deemed forward looking including, but not limited to, statements regarding: the Company’s current business plans and objectives, including the pursuit of strategic alternatives to maximize stockholder value, the timing of the equity investment closing and potential additional equity investment and the Nasdaq Hearings Panel process and potential results. Words such as “plans,” “expects,” “will,” “anticipates,” “continue,” “advance,” “believes,” “target,” “may,” “intend,” “could,” and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based on management’s current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. For a discussion of other risks and uncertainties, and other important factors, any of which could cause the Company’s actual results to differ from those contained in the forward-looking statements, see the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission on June 6, 2024, as updated by the Company’s subsequent filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and the Company undertakes no duty to update this information or to publicly announce the results of any revisions to any of such statements to reflect future events or developments, except as required by law.
EXICURE, INC.
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September 30, 2024 |
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December 31, 2023 |
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ASSETS |
|
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Current assets: |
|
|
|
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Cash and cash equivalents |
$ |
343 |
|
|
$ |
816 |
|
Accounts receivable |
|
— |
|
|
|
— |
|
Other receivable |
|
1,350 |
|
|
|
15 |
|
Prepaid expenses and other current assets |
|
907 |
|
|
|
1,193 |
|
Total current assets |
|
2,600 |
|
|
|
2,024 |
|
Property and equipment, net |
|
33 |
|
|
|
54 |
|
Right-of-use asset |
|
5,926 |
|
|
|
6,517 |
|
Other noncurrent assets |
|
2,072 |
|
|
|
2,985 |
|
Total assets |
$ |
10,631 |
|
|
$ |
11,580 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
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Current liabilities: |
|
|
|
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Accounts payable |
|
1,337 |
|
|
|
1,631 |
|
Accrued expenses and other current liabilities |
|
2,318 |
|
|
|
879 |
|
Total current liabilities |
|
3,655 |
|
|
|
2,510 |
|
Lease liability, noncurrent |
|
5,431 |
|
|
|
6,039 |
|
Total liabilities |
|
9,086 |
|
|
|
8,549 |
|
|
|
|
|
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Commitments and Contingencies (Note 12) |
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Stockholders’ equity: |
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|
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Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
193,628 |
|
|
|
192,594 |
|
Accumulated deficit |
|
(192,083 |
) |
|
|
(189,563 |
) |
Total stockholders' equity |
|
1,545 |
|
|
|
3,031 |
|
Total liabilities and stockholders’ equity |
$ |
10,631 |
|
|
$ |
11,580 |
|
* reflects a one-for-five (1:5) reverse stock split effected on August 27, 2024 |
EXICURE, INC.
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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|
|
2024 |
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|
|
2023 |
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Revenue: |
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Revenue |
$ |
— |
|
|
$ |
— |
|
|
$ |
500 |
|
|
$ |
— |
|
Total revenue |
|
— |
|
|
|
— |
|
|
|
500 |
|
|
|
— |
|
Operating expenses: |
|
|
|
|
|
|
|
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Research and development expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,423 |
|
General and administrative expense |
|
1,434 |
|
|
|
2,397 |
|
|
|
4,005 |
|
|
|
11,155 |
|
Litigation legal expense |
|
1,138 |
|
|
|
— |
|
|
|
1,138 |
|
|
|
— |
|
Loss from sale of property and equipment |
|
— |
|
|
|
920 |
|
|
|
— |
|
|
|
920 |
|
Total operating expenses |
|
2,572 |
|
|
|
3,317 |
|
|
|
5,143 |
|
|
|
13,498 |
|
Operating income (loss) |
|
(2,572 |
) |
|
|
(3,317 |
) |
|
|
(4,643 |
) |
|
|
(13,498 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
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Dividend income |
|
— |
|
|
|
(2,000 |
) |
|
|
— |
|
|
|
(2,000 |
) |
Interest income |
|
— |
|
|
|
13 |
|
|
|
5 |
|
|
|
45 |
|
Interest expense |
|
1 |
|
|
|
4 |
|
|
|
7 |
|
|
|
28 |
|
Other income |
|
(12 |
) |
|
|
— |
|
|
|
(18 |
) |
|
|
— |
|
Other expense |
|
1,500 |
|
|
|
44 |
|
|
|
2,137 |
|
|
|
(0.002 |
) |
Total other income (expense), net |
|
1,489 |
|
|
|
(1,939 |
) |
|
|
2,131 |
|
|
|
(1,929 |
) |
Net income (loss) before provision for income taxes |
|
(1,083 |
) |
|
|
(5,256 |
) |
|
|
(2,512 |
) |
|
|
(15,427 |
) |
Provision for income taxes |
|
(8 |
) |
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
Net income (loss) |
$ |
(1,091 |
) |
|
$ |
(5,256 |
) |
|
$ |
(2,520 |
) |
|
$ |
(15,427 |
) |
|
|
|
|
|
|
|
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Basic and diluted loss per common share * |
$ |
(0.57 |
) |
|
$ |
(3.04 |
) |
|
$ |
(1.36 |
) |
|
$ |
(9.89 |
) |
Weighted-average basic and diluted common shares outstanding * |
|
1,899,412 |
|
|
|
1,730,104 |
|
|
|
1,855,286 |
|
|
|
1,559,868 |
|
* reflects a one-for-five (1:5) reverse stock split effected on August 27, 2024 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241114173277/en/
Media Contact:
Josh Miller
847-673-1700
media@exicuretx.com
Source: Exicure, Inc.