Exicure, Inc. Reports Second Quarter 2023 Financial Results and Provides Corporate Update
- None.
- Significant reduction in force, suspension of preclinical activities, and halting of all research and development
- Cash, cash equivalents, and restricted cash decreased from $9.8 million as of December 31, 2022, to $3.5 million as of June 30, 2023
- Research and development expenses decreased from $6.7 million for the quarter ended June 30, 2022, to $0.9 million for the quarter ended June 30, 2023
- General and administrative expenses increased from $3.2 million for the quarter ended June 30, 2022, to $4.7 million for the quarter ended June 30, 2023
- The company had a net loss of $5.8 million for the quarter ended June 30, 2023, compared to a net loss of $7.5 million for the quarter ended June 30, 2022
Corporate Update
Recent highlights include:
-
In May, the Company entered into two separate subscription agreements (“Subscription Agreements”) with Cyworld Z Co., Ltd., (“Cyworld Z”). Pursuant to the Subscription Agreements, the Company purchased non-guaranteed private placement convertible bonds (“Bonds”) of Cyworld Z for a subscription amount of
each. The Bonds mature in May 2026 and the yield to maturity is$1 million 4.5% per annum.
Second Quarter 2023 Financial Results
Cash Position: Cash, cash equivalents and restricted cash were
Research and Development (R&D) Expense: Research and development expenses were
General and Administrative (G&A) Expense: General and administrative expenses were
Net Loss: The Company had a net loss of
Going Concern: Management believes that the Company’s existing cash and cash equivalents will fund its operating expenses into the fourth quarter of 2023. However, this estimate is based on assumptions about how the Company can limit spending that may prove to be wrong. It is very difficult to project the Company’s current cash burn rate given the transitional status of the Company and this estimate may prove inaccurate. Depending on the direction of the Company’s review of strategic alternatives, the Company may use available resources sooner than management currently expects. 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 will be needed by the Company within the next few months to pay expenses, fund the ongoing exploration of strategic alternatives and pursue any alternatives that may be identified. The Company seeks to raise capital in the third quarter of 2023 to fund its operations through 2024. 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. 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, 2022 filed with the Securities and Exchange Commission on March 27, 2023, 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. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) |
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June 30,
|
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December 31,
|
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|
|
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ASSETS |
|
|
|
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Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
2,335 |
|
|
$ |
8,577 |
|
Prepaid expenses and other assets |
|
1,329 |
|
|
|
1,474 |
|
Total current assets |
|
3,664 |
|
|
|
10,051 |
|
Property and equipment, net |
|
1,796 |
|
|
|
2,530 |
|
Right-of-use asset |
|
6,893 |
|
|
|
7,257 |
|
Other noncurrent assets |
|
5,202 |
|
|
|
3,490 |
|
Total assets |
$ |
17,555 |
|
|
$ |
23,328 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
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Current liabilities: |
|
|
|
||||
Accounts payable |
|
343 |
|
|
|
361 |
|
Accrued expenses and other current liabilities |
|
1,088 |
|
|
|
1,278 |
|
Total current liabilities |
|
1,431 |
|
|
|
1,639 |
|
Lease liability, noncurrent |
|
6,419 |
|
|
|
6,767 |
|
Total liabilities |
$ |
7,850 |
|
|
$ |
8,406 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
1 |
|
|
|
— |
|
Additional paid-in capital |
|
192,524 |
|
|
|
187,571 |
|
Accumulated deficit |
|
(182,820 |
) |
|
|
(172,649 |
) |
Total stockholders' equity |
|
9,705 |
|
|
|
14,922 |
|
Total liabilities and stockholders’ equity |
$ |
17,555 |
|
|
$ |
23,328 |
|
EXICURE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) |
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Three Months Ended June 30, |
|
Six Months Ended June 30, |
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|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
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Collaboration revenue |
$ |
— |
|
|
$ |
2,471 |
|
|
$ |
— |
|
|
$ |
5,036 |
|
Total revenue |
|
— |
|
|
|
2,471 |
|
|
|
— |
|
|
|
5,036 |
|
Operating expenses: |
|
|
|
|
|
|
|
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Research and development expense |
|
921 |
|
|
|
6,749 |
|
|
|
2,902 |
|
|
|
13,889 |
|
General and administrative expense |
|
4,721 |
|
|
|
3,205 |
|
|
|
7,279 |
|
|
|
6,367 |
|
Total operating expenses |
|
5,642 |
|
|
|
9,954 |
|
|
|
10,181 |
|
|
|
20,256 |
|
Operating loss |
|
(5,642 |
) |
|
|
(7,483 |
) |
|
|
(10,181 |
) |
|
|
(15,220 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
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Dividend income |
|
15 |
|
|
|
16 |
|
|
|
32 |
|
|
|
18 |
|
Interest income |
|
13 |
|
|
|
1 |
|
|
|
24 |
|
|
|
3 |
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(595 |
) |
Other income (expense), net |
|
(150 |
) |
|
|
(4 |
) |
|
|
(46 |
) |
|
|
(24 |
) |
Total other income (expense), net |
|
(122 |
) |
|
|
13 |
|
|
|
10 |
|
|
|
(598 |
) |
Net loss before provision for income taxes |
|
(5,764 |
) |
|
|
(7,470 |
) |
|
|
(10,171 |
) |
|
|
(15,818 |
) |
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
$ |
(5,764 |
) |
|
$ |
(7,470 |
) |
|
$ |
(10,171 |
) |
|
$ |
(15,818 |
) |
|
|
|
|
|
|
|
|
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Basic and diluted loss per common share |
$ |
(0.68 |
) |
|
$ |
(1.66 |
) |
|
$ |
(1.38 |
) |
|
$ |
(3.71 |
) |
Weighted-average basic and diluted common shares outstanding |
|
8,432,394 |
|
|
|
4,503,983 |
|
|
|
7,366,594 |
|
|
|
4,268,955 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230811438629/en/
Media:
Karen Sharma
MacDougall
781-235-3060
ksharma@macdougall.bio
Source: Exicure, Inc.
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