Exicure, Inc. Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Exicure, Inc. (Nasdaq: XCUR) reported its Q2 2024 financial results, revealing a challenging financial position. The company's cash and cash equivalents decreased to $0.5 million as of June 30, 2024, from $0.8 million at the end of 2023. Exicure's net loss narrowed to $0.6 million in Q2 2024, compared to $5.8 million in Q2 2023, primarily due to reduced operations and cost-cutting measures. General and administrative expenses decreased significantly to $1.2 million, down from $5.6 million in the same quarter last year. The company generated $0.6 million in other income from selling clinical product samples. However, Exicure faces a critical cash shortage and urgently needs substantial additional financing to continue operations and explore strategic alternatives.

Positive

• Net loss decreased from $5.8 million in Q2 2023 to $0.6 million in Q2 2024
• General and administrative expenses reduced by $4.4 million year-over-year
• Generated $0.6 million in other income from selling clinical product samples

Negative

• Cash and cash equivalents decreased to $0.5 million, insufficient to fund operations
• Urgent need for substantial additional financing to continue operations
• ability to further cut costs and extend operating runway
• Going concern issues due to insufficient funds to continue operations

Financial Analyst

Exicure's Q2 2024 results paint a grim picture of a company in severe financial distress. With only $0.5 million in cash, down from $0.8 million at the end of 2023, the company is critically underfunded. The 78.6% reduction in G&A expenses to $1.2 million reflects drastic cost-cutting measures, but it's insufficient to sustain operations. The $0.6 million from selling clinical product samples is a desperate move for short-term cash. Despite narrowing losses, the company's going concern warning and urgent need for substantial financing indicate a high risk of bankruptcy or dilutive financing. For investors, this represents an extremely high-risk situation with potential for total loss.

Biotechnology Expert

Exicure's transition from an early-stage biotechnology company to a shell seeking strategic alternatives is a stark reminder of the risks in biotech investing. The suspension of all R&D activities and preclinical work signifies a complete halt in scientific progress. Selling clinical product samples, while providing short-term cash, potentially diminishes future value if a viable path forward is found. The lack of ongoing research makes Exicure less attractive for potential partnerships or acquisitions in the biotech space. Without active programs or valuable intellectual property, the company's only remaining asset may be its Nasdaq listing, which could attract reverse merger opportunities but offers little value to current shareholders.

Corporate Restructuring Specialist

Exicure's situation calls for immediate and drastic action. The company's exploration of strategic alternatives, given its dire financial state, likely includes options such as a reverse merger, asset sale, or liquidation. The severe cash crunch limits negotiating power and time for due diligence, potentially forcing unfavorable terms. The company's Nasdaq listing remains a valuable asset, but continued compliance with listing requirements is questionable. Management's acknowledgment of further cost-cutting options suggests that any strategic move will be from a position of weakness. Shareholders should brace for significant dilution or potential total loss, as the company's bargaining position weakens daily without new financing.

CHICAGO--(BUSINESS WIRE)-- Exicure, Inc. (Nasdaq: XCUR, the "Company"), has historically been an early-stage biotechnology company focused on developing nucleic acid therapies targeting ribonucleic acid against validated targets. In September 2022, the Company announced a significant reduction in force, suspension of preclinical activities and halting of all research and development, and that the Company was exploring strategic alternatives to maximize stockholder value.

Second Quarter 2024 Financial Results

Cash Position: Cash and cash equivalents were $0.5 million as of June 30, 2024, as compared to $0.8 million as of December 31, 2023. The Company believes that its cash and cash equivalents are insufficient to continue to fund operations and additional funding is needed in the very near term.

General and Administrative (G&A) Expense: General and administrative expenses were $1.2 million for the quarter ended June 30, 2024, as compared to $5.6 million for the quarter ended June 30, 2023. The decrease in G&A expense of $4.4 million for the three months ended June 30, 2024 was mostly due to higher costs in 2023 due to separation pay for executives and related stock based compensation expense, and consulting fees, partially offset by lower bonus, retention, and insurance expense.

Other Income: The Company sold samples of its clinical products for $0.6 million to a private clinical stage biopharmaceutical company.

Net Loss: The Company had a net loss of $0.6 million for the quarter ended June 30, 2024, as compared to a net loss of $5.8 million for the quarter ended June 30, 2023. The decrease in net loss of $5.2 million was primarily driven by the reduction of payroll and operating costs due to reduced operations, as well as $0.6 million of other income.

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. 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.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
	June 30, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	528			$	816
Other receivable		559				15
Prepaid expenses and other current assets		992				1,193
Total current assets		2,079				2,024
Property and equipment, net		40				54
Right-of-use asset		6,126				6,517
Other noncurrent assets		2,443				2,985
Total assets	$	10,688			$	11,580
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		1,585				1,631
Accrued expenses and other current liabilities		846				879
Short-term debt		1,000				—
Total current liabilities		3,431				2,510
Lease liability, noncurrent		5,644				6,039
Total liabilities	$	9,075			$	8,549
Commitments and Contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $0.0001 par value per share; 10,000,000 shares authorized, no shares issued and outstanding, June 30, 2024 and December 31, 2023		—				—
Common stock, $0.0001 par value per share; 200,000,000 shares authorized, 8,651,148 issued and outstanding, June 30, 2024; 8,650,753 issued and outstanding, December 31, 2023		1				1
Additional paid-in capital		192,604				192,593
Accumulated deficit		(190,992	)			(189,563	)
Total stockholders' equity		1,613				3,031
Total liabilities and stockholders’ equity	$	10,688			$	11,580

EXICURE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
	Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Revenue:
Revenue	$	—			$	—			$	500			$	—
Total revenue		—				—				500				—
Operating expenses:
Research and development expense		—				—				—				1,423
General and administrative expense		1,235				5,642				2,571				8,758
Total operating expenses		1,235				5,642				2,571				10,181
Operating loss		(1,235	)			(5,642	)			(2,071	)			(10,181	)
Other income, net:
Dividend income		1				15				5				32
Interest income		3				13				6				24
Interest expense		(6	)			—				(6	)			—
Other income		637				—				637				—
Other expense		—				(150	)			—				(46	)
Total other income, net		635				(122	)			642				10
Net loss before provision for income taxes		(600	)			(5,764	)			(1,429	)			(10,171	)
Provision for income taxes		—				—				—				—
Net loss	$	(600	)		$	(5,764	)		$	(1,429	)		$	(10,171	)
Basic and diluted loss per common share	$	(0.07	)		$	(0.68	)		$	(0.17	)		$	(1.38	)
Weighted-average basic and diluted common shares outstanding		8,651,078				8,432,394				8,650,878				7,366,594

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240813598559/en/

Josh Miller

847-673-1700

media@exicuretx.com

Source: Exicure, Inc.

FAQ

What was Exicure's (XCUR) cash position as of June 30, 2024?

Exicure's cash and cash equivalents were $0.5 million as of June 30, 2024, down from $0.8 million at the end of 2023.

How much did Exicure (XCUR) reduce its net loss in Q2 2024 compared to Q2 2023?

Exicure reduced its net loss by $5.2 million, from $5.8 million in Q2 2023 to $0.6 million in Q2 2024.

What was Exicure's (XCUR) general and administrative expense for Q2 2024?

Exicure's general and administrative expenses were $1.2 million for Q2 2024, down from $5.6 million in Q2 2023.

How much other income did Exicure (XCUR) generate in Q2 2024?

Exicure generated $0.6 million in other income by selling samples of its clinical products to a private biopharmaceutical company.