Exicure, Inc. Reports Third Quarter 2023 Financial Results
Exicure (Nasdaq: XCUR) reported its third-quarter 2023 financial results. The company, which halted all R&D activities in September 2022 to explore strategic alternatives, had cash and equivalents of $0.9 million as of September 30, 2023, down from $8.6 million at the end of 2022, and further decreased to $0.2 million by April 30, 2024.
R&D expenses were $0 for Q3 2023, compared to $4.8 million for the same period in 2022. General and administrative expenses remained steady at $2.4 million. The net loss was $5.3 million, slightly up from $5.2 million in Q3 2022, mainly due to a loss on debt securities.
The company urgently needs additional funding to continue operations, as current cash levels are insufficient.
- Significant reduction in R&D expenses to $0, reflecting cost control measures.
- Stable general and administrative expenses at $2.4 million despite organizational changes.
- Cash and cash equivalents dropped from $8.6 million to $0.2 million within a year.
- Net loss increased to $5.3 million from $5.2 million primarily due to losses on debt securities.
- Company's current cash position is insufficient to fund operations, requiring urgent additional financing.
- Suspension of all R&D activities and significant reduction in workforce may impact future growth potential.
Insights
Exicure, Inc.’s latest financial results paint a concerning picture, particularly for retail investors. The company’s cash position has dramatically declined from
It’s noteworthy that the company has halted all Research and Development (R&D) activities, resulting in R&D expenses dropping to zero. However, the cessation of R&D could hinder any future growth prospects and innovation, limiting the company’s ability to develop new products or therapies.
Furthermore, despite the reduction in operations, General and Administrative (G&A) expenses remained relatively static at about
Net loss slightly increased to
Given the company's current going concern status, uncertainties linger around its ability to secure additional financing. The company’s exploration of strategic alternatives presents a high-risk situation for investors, making it essential to monitor further developments regarding its financial stability and strategic decisions.
The present scenario for Exicure, Inc. calls for cautious optimism at best. With the suspension of preclinical activities, investors should reconsider the market potential of the company. The absence of R&D expenses signifies no ongoing projects, meaning that no new products are in the pipeline to drive future revenue.
The flat trajectory of General and Administrative expenses indicates that significant cost savings measures have already been implemented. This raises a red flag about the company’s ability to operate efficiently with minimal funds while still incurring substantial overhead costs.
The primary concern for investors is the going concern warning. This terminology suggests significant financial instability, putting investor capital at risk. The need for substantial immediate financing introduces volatility and uncertainty, which can severely impact stock prices.
Given the company’s tight liquidity and the halt in its research activities, the stock might remain under pressure until there's a clear resolution regarding its financial strategy and operational stability.
The strategic shift by Exicure, Inc. from an R&D-focused biotechnology firm to exploring strategic alternatives is noteworthy. The complete halt in R&D is significant, indicating a pivot away from its core competencies. For a biotech firm, where valuation heavily relies on a promising pipeline, this creates an uncertain future trajectory.
The drastic reduction in R&D expenses, from
Investors should be aware that the company's survival now hinges on its ability to secure additional funding or a successful strategic partnership/acquisition. The lack of assurance regarding future financing adds a layer of risk that is particularly high given the typically long development cycles and capital-intensive nature of the biotech industry.
This situation is a stark reminder of the high-risk, high-reward nature of biotech investments, where financial health is as critical as scientific breakthroughs.
Third Quarter 2023 Financial Results
Cash Position: Cash and cash equivalents 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 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, 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. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands, except share and per share data) |
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|
September 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 |
$ |
922 |
|
|
$ |
8,577 |
|
Other receivable, from sale of property and equipment |
|
711 |
|
|
|
— |
|
Prepaid expenses and other assets |
|
1,457 |
|
|
|
1,474 |
|
Total current assets |
|
3,090 |
|
|
|
10,051 |
|
Property and equipment, net |
|
61 |
|
|
|
2,530 |
|
Right-of-use asset |
|
6,707 |
|
|
|
7,257 |
|
Other noncurrent assets |
|
3,092 |
|
|
|
3,490 |
|
Total assets |
$ |
12,950 |
|
|
$ |
23,328 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
|
865 |
|
|
|
361 |
|
Accrued expenses and other current liabilities |
|
1,356 |
|
|
|
1,278 |
|
Total current liabilities |
|
2,221 |
|
|
|
1,639 |
|
Lease liability, noncurrent |
|
6,231 |
|
|
|
6,767 |
|
Total liabilities |
$ |
8,452 |
|
|
$ |
8,406 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
1 |
|
|
|
— |
|
Additional paid-in capital |
|
192,573 |
|
|
|
187,571 |
|
Accumulated deficit |
|
(188,076 |
) |
|
|
(172,649 |
) |
Total stockholders' equity |
|
4,498 |
|
|
|
14,922 |
|
Total liabilities and stockholders’ equity |
$ |
12,950 |
|
|
$ |
23,328 |
|
EXICURE, INC. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in thousands, except share and per share data) |
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|
Three Months Ended
|
|
Nine Months Ended
|
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|
2023 |
|
2022 |
|
2023 |
|
2022 |
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Revenue: |
|
|
|
|
|
|
|
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Collaboration revenue |
$ |
— |
|
|
$ |
2,016 |
|
|
$ |
— |
|
|
$ |
7,052 |
|
Total revenue |
|
— |
|
|
|
2,016 |
|
|
|
— |
|
|
|
7,052 |
|
Operating expenses: |
|
|
|
|
|
|
|
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Research and development expense |
|
— |
|
|
|
4,805 |
|
|
|
1,423 |
|
|
|
18,694 |
|
General and administrative expense |
|
2,397 |
|
|
|
2,416 |
|
|
|
11,155 |
|
|
|
8,783 |
|
Loss from sale of property and equipment |
|
920 |
|
|
|
— |
|
|
|
920 |
|
|
|
— |
|
Total operating expenses |
|
3,317 |
|
|
|
7,221 |
|
|
|
13,498 |
|
|
|
27,477 |
|
Operating loss |
|
(3,317 |
) |
|
|
(5,205 |
) |
|
|
(13,498 |
) |
|
|
(20,425 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
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Changes in fair value of investment in convertible notes receivable |
|
(2,000 |
) |
|
|
— |
|
|
|
(2,000 |
) |
|
|
— |
|
Dividend income |
|
13 |
|
|
|
41 |
|
|
|
45 |
|
|
|
59 |
|
Interest income |
|
4 |
|
|
|
4 |
|
|
|
28 |
|
|
|
7 |
|
Interest expense |
|
|
|
— |
|
|
|
— |
|
|
|
(595 |
) |
||
Other income (expense), net |
|
44 |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(24 |
) |
Total other income (expense), net |
|
(1,939 |
) |
|
|
45 |
|
|
|
(1,929 |
) |
|
|
(553 |
) |
Net loss before provision for income taxes |
|
(5,256 |
) |
|
|
(5,160 |
) |
|
|
(15,427 |
) |
|
|
(20,978 |
) |
Provision for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
$ |
(5,256 |
) |
|
$ |
(5,160 |
) |
|
$ |
(15,427 |
) |
|
$ |
(20,978 |
) |
|
|
|
|
|
|
|
|
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Basic and diluted loss per common share |
$ |
(0.61 |
) |
|
$ |
(1.04 |
) |
|
$ |
(1.98 |
) |
|
$ |
(4.66 |
) |
Weighted-average basic and diluted common shares outstanding |
|
8,650,402 |
|
|
|
4,963,344 |
|
|
|
7,799,233 |
|
|
|
4,502,962 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240516969140/en/
Josh Miller
847-673-1707
media@exicuretx.com
Source: Exicure, Inc.
FAQ
What were Exicure's cash and cash equivalents as of September 30, 2023?
How did Exicure's R&D expenses for Q3 2023 compare to Q3 2022?
What was Exicure's net loss for the third quarter of 2023?
Why did Exicure's cash and cash equivalents decrease significantly?
Does Exicure need additional funding to continue operations?
