Financial Performance - The net loss for the nine months ended September 30, 2025, was $6,503,698, compared to a net loss of $4,025,361 for the same period in 2024, indicating an increase in losses of about 61.6%[11] - For the nine months ended September 30, 2025, eXoZymes reported a net loss of $6,503,698, compared to a net loss of $4,025,361 for the same period in 2024, reflecting an increase in losses of approximately 62%[80] - The company has substantial doubt about its ability to continue as a going concern due to anticipated funding shortfalls and its pre-revenue status[22] - The company reported no operating income for the three and nine months ended September 30, 2025, maintaining a consistent trend from the previous year[11] - The company incurred net cash used in operating activities of $(4,528,240) for the nine months ended September 30, 2025, compared to $(2,798,123) in 2024, an increase of approximately 62%[16] Assets and Equity - Total assets decreased from $13,034,404 on December 31, 2024, to $7,719,049 on September 30, 2025, representing a decline of approximately 40.5%[9] - Total stockholders' equity fell from $10,420,775 on December 31, 2024, to $5,374,422 on September 30, 2025, a decrease of approximately 48.5%[9] - Cash and cash equivalents decreased from $9,719,310 at the beginning of the period to $5,098,687 at the end of the period, a reduction of about 47%[16] - The fair value of cash and cash equivalents as of September 30, 2025, is $5,098,687, with no Level 2 or Level 3 measurements reported[42] Research and Development - Research and development costs for the nine months ended September 30, 2025, were $2,594,765, up from $1,238,463 in 2024, reflecting a significant increase of approximately 109%[11] - For the nine months ended September 30, 2025, research and development costs prior to grant offsets amounted to $3,748,110, compared to $3,046,169 for the same period in 2024, reflecting an increase of approximately 22.9%[51] - Research and development costs, net of grants, were $2,594,765 for the nine months ended September 30, 2025, compared to $1,238,463 in 2024, reflecting a significant increase of approximately 110%[1] Grants and Funding - The Department of Energy contributed 89% and the NIH contributed 11% of all grant reimbursements for the nine months ended September 30, 2025[31] - Grant reimbursements for the nine months ended September 30, 2025, totaled $1,120,907, down from $1,756,852 in 2024, indicating a decrease of about 36.3%[50] - The balance of grants receivable at the end of the nine months ended September 30, 2025, was $302,643, a decrease from $553,963 at the end of the same period in 2024, representing a decline of approximately 45.2%[48] - eXoZymes received a $3 million share of a $9.2 million grant from the U.S. National Science Foundation aimed at enhancing cell-free systems, awarded on July 1, 2025[49] Stock and Compensation - The weighted average number of common shares outstanding increased from 6,251,158 in 2024 to 8,377,513 in 2025, reflecting a growth of about 34%[11] - eXoZymes' stock-based compensation for the nine months ended September 30, 2025, was $1,066,461, compared to $808,362 for the same period in 2024[71] - The total number of stock options outstanding was 1,982,830 shares as of September 30, 2025, with a weighted average exercise price of $5.51[72] - The company has unrecognized stock-based compensation of $3,073,349 as of September 30, 2025[71] - The company issued 19,440 shares of common stock to key executives on May 12, 2025, valued at $243,778, in lieu of cash bonuses[61] Operating Costs - Total operating costs for the nine months ended September 30, 2025, were $7,020,981, up from $3,948,789 in 2024, indicating an increase of approximately 78%[1] - General and administrative costs for the nine months ended September 30, 2025, totaled $4,426,216, compared to $2,710,326 in 2024, marking an increase of approximately 63.3%[11] - The company recognized operating lease expenses of $280,898 for both the nine months ended September 30, 2025, and 2024, indicating no change year-over-year[103] Lease and Liabilities - The total lease liabilities as of September 30, 2025, amounted to $1,200,888 for operating leases and $119,236 for finance leases[104] - The company entered into a lease for new office space with an initial base rent of $13,277 per month, which will increase annually, and the lease term is set for 60 months[94] - eXoZymes has recorded right-of-use assets of $1,124,925 and operating lease liabilities of $1,200,888 as of September 30, 2025, with a weighted average remaining lease term of 3.83 years[102] Miscellaneous - The company established a wholly owned subsidiary, NCTx LLC, on May 5, 2025, focused on developing N-trans-caffeoyltyramine, a rare plant-derived compound[21] - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[29] - The company has not generated revenue to date and is in a pre-revenue status, raising concerns about its ability to continue as a going concern without additional funding[22] - The company did not experience any credit risk losses during the three and nine months ended September 30, 2025, and 2024[38]

Financial Performance - The net loss for the six months ended June 30, 2025, was $4.22 million, compared to a net loss of $2.37 million for the same period in 2024, indicating an increase in losses of approximately 77.9%[10] - Total operating costs for the six months ended June 30, 2025, were $4.50 million, up from $2.34 million in 2024, reflecting an increase of approximately 92.7%[10] - The company reported no operating income for the three and six months ended June 30, 2025, consistent with the previous year[10] - The Company incurred net losses of $4,216,707 and $2,368,988 for the six months ended June 30, 2025 and 2024, respectively, indicating a year-over-year increase in losses of approximately 77%[21] - For the six months ended June 30, 2025, the net loss was $4,216,708, compared to a net loss of $2,368,988 for the same period in 2024, resulting in a basic and diluted loss per share of $(0.50) compared to $(0.38) in 2024[73] Assets and Equity - As of June 30, 2025, total assets decreased to $9.68 million from $13.03 million as of December 31, 2024, representing a decline of approximately 25.5%[8] - Stockholders' equity decreased to $7.24 million as of June 30, 2025, from $10.42 million at the end of 2024, a decline of approximately 30.5%[8] - Cash and cash equivalents decreased to $6.99 million as of June 30, 2025, from $9.72 million at the end of 2024, a reduction of about 28.1%[15] - Cash and cash equivalents held by the Company as of June 30, 2025, amounted to $6,985,858, with approximately $6,735,858 exceeding FDIC insured limits[35][37] Research and Development - Research and development costs for the six months ended June 30, 2025, were $1.38 million, compared to $514,977 in 2024, marking an increase of approximately 168.5%[10] - For the six months ended June 30, 2025, research and development costs amounted to $2,268,677, an increase of 23.8% from $1,832,855 in the same period of 2024[49] - The Department of Energy contributed 98% and the NIH contributed 2% of all grant reimbursements for the six months ended June 30, 2025, highlighting a concentration of funding sources[30] - The Company established a wholly owned subsidiary, NCTx LLC, focused on developing N-trans-caffeoyltyramine, a rare plant-derived compound[20] Grants and Funding - Grants received for the six months ended June 30, 2025, totaled $864,433, down 32.0% from $1,272,127 in 2024[47] - The balance of grants receivable at the end of the period decreased significantly to $257,407 in 2025 from $1,147,171 in 2024, representing a decline of 77.5%[46] - The Company recognizes grant reimbursements from the Federal government as offsets against research and development expenses, with no allowance for credit losses recorded[44][45] Stock and Compensation - The weighted average number of common shares outstanding for the six months ended June 30, 2025, was 8,372,564, compared to 6,250,557 in 2024, an increase of approximately 33.9%[10] - The company incurred stock-based compensation expenses of $884,531 for the six months ended June 30, 2025, compared to $491,085 in 2024, an increase of approximately 80%[15] - Stock-based compensation for the six months ended June 30, 2025, was $640,753, up 30.4% from $491,085 in 2024[65] - The company has unrecognized stock-based compensation of $3,194,925 as of June 30, 2025[65] Operational Highlights - The company had no revenue reported for the three and six months ended June 30, 2025, indicating a continued focus on development rather than sales[10] - The company operates as a single reportable operating segment focused on the research and commercialization of exozyme biosolutions[54] - The company has not generated revenue from operations, remaining in a pre-revenue status[21] Lease and Liabilities - As of June 30, 2025, the company had total operating lease liabilities of $1,264,863 and finance lease liabilities of $129,593[95] - The company recognized operating lease expenses of $187,265 for both the six months ended June 30, 2025, and 2024[96] - The company executed a lease for new office space with an initial base rent of $13,277 per month, which will increase annually[87] Future Outlook - The Company has sufficient working capital for the near term but faces substantial doubt about its ability to continue as a going concern due to anticipated funding shortfalls[21] - The company plans to issue stock options to purchase 235,817 shares at an exercise price of $12.69 per share, which will vest over four years[98] - On July 1, 2025, the company was awarded a $3 million share of a $9.2 million grant from the U.S. National Science Foundation aimed at enhancing cell-free systems[99]

Financial Performance - The company reported a net loss of $1,856,421 for the three months ended March 31, 2025, compared to a net loss of $1,008,458 for the same period in 2024, indicating an increase in losses of approximately 84.2%[11] - Basic and diluted loss per share for the three months ended March 31, 2025, was $(0.22), compared to $(0.16) for the same period in 2024[61] - The net loss for the three months ended March 31, 2025, was $1,856,421, compared to a net loss of $1,008,458 for the same period in 2024[11] - The company experienced a net cash decrease of $(1,207,833) during the three months ended March 31, 2025, compared to an increase of $47,263 in the same period of 2024[21] Assets and Liabilities - Total assets decreased from $13,034,404 on December 31, 2024, to $11,525,692 on March 31, 2025, representing a decline of approximately 11.5%[9] - Cash and cash equivalents decreased from $9,719,310 at the beginning of the period to $8,511,477 at the end of the period, a reduction of approximately 12.4%[16] - The Company had cash equivalents of $8,159,472 as of March 31, 2025, with approximately $8,186,086 in cash exceeding FDIC insurance limits[31][32] - The Company reported right-of-use assets of $1,263,855 and operating lease liabilities of $1,326,424[79] - The total future payments due under operating leases as of March 31, 2025, amount to $1,560,636, with the largest payment of $378,576 due in 2028[81] Operating Costs - Total operating costs increased to $1,950,728 in Q1 2025 from $1,008,458 in Q1 2024, reflecting a rise of approximately 93.3%[11] - Cash used in operating activities was $(1,133,533) for the three months ended March 31, 2025, compared to cash provided of $281,199 in the same period of 2024, indicating a significant decline in operational cash flow[21] - Stock-based compensation for the three months ended March 31, 2025, was $317,277, compared to $142,810 for the same period in 2024[53] Research and Development - Research and development costs net of grants amounted to $575,016 for Q1 2025, up from $277,582 in Q1 2024, marking an increase of approximately 107.2%[11] - Research and development costs for the three months ended March 31, 2025, amounted to $1,150,797, compared to $986,282 for the same period in 2024, reflecting an increase of approximately 16.6%[40] - The Company received grant reimbursements of $571,822 and $674,158 for research and development costs for the three months ended March 31, 2025, and 2024, respectively[39] Shareholder Information - The weighted average number of common shares outstanding increased from 6,250,002 in Q1 2024 to 8,367,810 in Q1 2025, reflecting a growth of approximately 33.9%[11] - The Company has a total of 1,747,789 stock options outstanding as of March 31, 2025, with a weighted average remaining contractual life of 5.54 years[54] - As of March 31, 2025, stock options to purchase 632,757 shares of Common Stock were vested, with a weighted average exercise price of $4.57[53] Legal and Compliance - The company has not recorded any accrued royalties under the exclusive license agreement as of March 31, 2025[68] - The company has met all development milestones required under the license agreement as of March 31, 2025[69] - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from various reporting requirements[24] Subsidiaries and Ventures - The company established a wholly owned subsidiary, NCTx LLC, focused on developing a rare plant-derived compound relevant to metabolic health[82] - The company has filed a provisional patent application for deuterated cannabinoid molecules in a joint venture with Neuractas Therapeutics, although no business activities have occurred to date[19] Funding and Grants - The Company has a minority interest of 48% held by MDB Capital Holdings, LLC as of March 31, 2025, following the dilution from the November 2024 IPO[18] - The Company reported a significant concentration of risk, with 97% of grant reimbursements coming from the Department of Energy and 3% from the NIH for the three months ended March 31, 2025[26] - The balance of grants receivable at the end of the period was $595,160 as of March 31, 2025, down from $1,111,611 at the end of March 2024, indicating a decrease of approximately 46.5%[39]

Funding and Financial Position - eXoZymes Inc. has received a total of $13,639,011 in grants from various sources, including $50,000 from the Gates Foundation for terpene synthesis and funding from the Department of Energy for isobutanol production[36][37]. - The company recognizes the challenges in obtaining new grants and may need to raise additional capital if current funding sources are exhausted[37]. - eXoZymes incurred net losses of $5,861,335 and $2,038,389 for the years ended December 31, 2024 and 2023, respectively, and used cash for operations of $(8,505,650) and $(1,180,870) during the same periods[95]. - eXoZymes is a pre-revenue, development-stage company and does not expect to generate revenue or net income until it successfully commercializes its first products[96]. - The company anticipates requiring additional capital to support its long-term business plan, which may involve private and public offerings, borrowings, and potential mergers[97]. - The company raised a gross amount of $15,901,328 from its initial public offering (IPO) on November 11, 2024, with a net proceeds of $15,206,543[178]. - Approximately $5,149,980 of the net proceeds has been utilized, including $4,243,022 for related party loans, $143,615 for lab equipment, and $763,343 for working capital[179]. - The company has not paid any cash dividends in the past and has no immediate plans to do so, intending to reinvest earnings into technology and operations[163]. - The company has received a $1,000,000 grant from the Department of Defense for biomanufacturing initiatives, which will enhance its working capital position[196]. - The company plans to utilize proceeds from the IPO for staffing, R&D, and repayment of approximately $4,243,022 in loans[194]. Business Strategy and Market Focus - The company plans to focus on low-volume, high-value chemical compounds, particularly those that can serve as active ingredients in nutraceuticals and have potential as active pharmaceutical ingredients (APIs)[38][39]. - eXoZymes aims to leverage its unique technology platform to create commercial value and has demonstrated capabilities in developing exozyme biosolutions for nutraceuticals and pharmaceuticals[29][30]. - The company anticipates that partnerships will be essential for expanding its product offerings and accessing new markets, as it currently lacks the resources to pursue all potential markets independently[42][43]. - eXoZymes' focus on nutraceuticals is seen as a risk-minimizing strategy that can also serve as a foundation for future pharmaceutical developments[39]. - eXoZymes plans to focus on nutraceuticals with pharmaceutical potential, leveraging existing knowledge and infrastructure for multiple biosolutions[54]. - The company is developing exozyme-based biosolutions for the nutraceutical, pharmaceutical, and biofuels industries, which will require addressing various regulatory compliance[70]. Technology and Innovation - eXoZymes' technology allows for the production of valuable chemicals using AI-designed exozymes, which can scale linearly and avoid the challenges associated with traditional cell-based synthetic biology[27][31]. - The company has a decade of expertise in enzyme engineering and has integrated AI and biochemical pathway engineering to enhance its biosolutions[32]. - eXoZymes' biomanufacturing platform utilizes cell-free exozymes, enhancing control and efficiency in producing small molecule natural products[48]. - The technology aims to overcome scalability challenges in synthetic biology, achieving higher titers, yields, and product purity compared to traditional methods[50]. - eXoZymes's unique technological approach allows for the production of diverse chemicals through multi-step cell-free biocatalysis, providing a competitive advantage[81][86]. - The platform allows for complex multi-step chemical conversions in a single bioreactor, improving productivity and reducing costs[53]. - The company believes its unique technological approach and intellectual property on recycling essential cofactors provide a competitive advantage over traditional synthetic biochemical companies[121]. Regulatory and Competitive Landscape - eXoZymes faces competition from established companies in the synthetic biology space, including Codexis, Inc. and Solugen Inc., which focus on enzyme engineering and biofuels[83]. - The company anticipates that regulations regarding cannabinoids and biofuels will continue to evolve, impacting its product development and market strategies[75][80]. - The company may face unique regulatory hurdles due to the novel nature of its bio-synthesized compounds, which could delay development and commercialization[104]. - Future collaboration arrangements may pose risks, including collaborators not performing as expected or failing to comply with regulatory requirements[116]. - The company faces risks related to intellectual property infringement claims, which could delay commercialization of its products[132]. Operational and Management Considerations - The company employs approximately 31 full-time employees, with 18 focused on R&D efforts and plans to expand personnel and manufacturing capabilities[89]. - eXoZymes's ability to retain its current management and scientific team is critical for its success, as losing key personnel could significantly impact operations[106]. - The company currently lacks significant sales, marketing, manufacturing, and distribution capabilities, which are essential for product commercialization[114]. - Collaborations with third parties for research, testing, manufacturing, and distribution are critical for the company's business success[115]. - The company relies on a single facility for operations, posing a significant risk to business continuity in case of disruptions[146]. Financial Performance and Projections - Total operating income for 2024 was $0, a decrease of 100% from $70,069 in 2023[186]. - Research and development costs increased by $1,341,286 to $1,868,766 in 2024, reflecting a 254.3% increase due to higher salaries and lab expenses[187]. - Total general and administrative costs rose to $4,063,339 in 2024, a 203.5% increase from $1,338,811 in 2023[186]. - Net operating loss for 2024 was $5,932,105, compared to a loss of $1,796,222 in 2023, marking a 230.3% increase[186]. - Cash and cash equivalents surged to $9,719,310 in 2024, a 14,508.3% increase from $66,533 in 2023[189]. - Total assets increased by 266.3% to $13,034,404 in 2024, up from $3,558,509 in 2023[189]. - Working capital improved to $9,487,137 in 2024, compared to a negative working capital of $(1,201,680) in 2023, reflecting an increase of $10,688,817[193]. Market Risks and Economic Factors - The company is aware of potential recessionary indicators in the U.S. economy, which could impact the business environment and capital markets[214]. - The company does not anticipate significant impacts from inflation on its operations to date[211]. - Supply chain issues are being monitored, but the company does not expect them to significantly affect business activities[213]. - The company is focused on developing new technologies, but there is uncertainty regarding their commercial viability and market acceptance[216]. - No current trends, events, or uncertainties are identified that would materially affect the company's financial condition in the near term[217].

Financial Performance - Net loss for the nine months ended September 30, 2024, was $4,025,361, compared to a net loss of $939,825 for the same period in 2023, reflecting a year-over-year increase of 328.5%[10] - The company reported a net cash used in operating activities of $(2,798,123) for the nine months ended September 30, 2024, compared to $(397,590) for the same period in 2023, indicating a significant increase in cash outflow[14] - The net loss for the three months ended September 30, 2024, was $(1,656,373), representing a 218.2% increase compared to the same period in 2023[92] - The accumulated deficit increased to $(10,109,984) as of September 30, 2024, from $(6,084,623) on December 31, 2023, representing a deterioration of 66.5%[8] - For the nine months ended September 30, 2024, the net loss was $4,025,361, compared to a net loss of $939,825 for the same period in 2023, resulting in a basic and diluted loss per share of $(0.64) compared to $(0.15) in 2023[60] Revenue and Funding - The company raised gross proceeds of $15,000,000 from its IPO by selling 1,875,000 shares of Common Stock, with net proceeds of approximately $14,321,686 after underwriting costs[18] - The company plans to use the IPO proceeds for expanding production capabilities, staffing, R&D, and repaying approximately $4,392,455 in intercompany loans[18] - The company has received grants from the Department of Energy (64%) and NIH (36%) for the nine months ended September 30, 2024, indicating a reliance on government funding[26] - The Company received a cost share grant of approximately $1,000,000 from the Department of Defense BioMADE initiative for cell-free biomanufacturing of isobutanol[85] - Grants received for the nine months ended September 30, 2024, totaled $1,756,852, compared to $2,180,581 for the same period in 2023, reflecting a decrease of approximately 19.4%[38] Operating Costs - Operating costs for the three months ended September 30, 2024, totaled $1,611,726, significantly higher than $391,846 for the same period in 2023, indicating a rise of 311.5%[10] - Total general and administrative costs for the three months ended September 30, 2024, rose by 144.1% to $888,239[92] - For the nine months ended September 30, 2024, total operating costs rose by 347.7% to $3,948,789, with significant increases in general and administrative costs[93] - Compensation costs for the three months ended September 30, 2024, surged by 358.3% to $546,095 compared to the same period in 2023[92] - Research and development costs for the three months ended September 30, 2024, amounted to $723,487, reflecting a 2,489.8% increase from the previous year[92] Assets and Liabilities - Total current assets increased to $1,422,591 as of September 30, 2024, up from $1,213,614 on December 31, 2023, representing a growth of 17.2%[8] - Total liabilities rose significantly to $7,161,683 as of September 30, 2024, compared to $3,942,828 on December 31, 2023, marking an increase of 81.4%[8] - Cash and cash equivalents increased to $233,935 as of September 30, 2024, from $66,533 at the beginning of the period, showing a growth of 251.5%[14] - Working capital decreased to $(4,379,709) as of September 30, 2024, down from $(1,201,680) at the end of 2023, primarily due to reduced grant reimbursements[101] - Total current liabilities surged by 140.2% to $5,802,300 compared to $2,415,294 at the end of 2023[96] Research and Development - Research and development costs for the nine months ended September 30, 2024, were $1,238,463, compared to $67,095 for the same period in 2023, an increase of 1745.5%[10] - For the nine months ended September 30, 2024, research and development costs before grant offsets totaled $3,046,169, an increase of 30.7% compared to $2,332,503 in 2023[39] - The increase in research and development costs was attributed to higher salaries and lab expenses[95] Stock and Equity - The weighted average of common shares outstanding was 6,251,158 for the nine months ended September 30, 2024, compared to 6,250,002 for the same period in 2023, reflecting a slight increase[10] - The total number of stock options outstanding was 1,752,983, with a weighted average exercise price of $4.57[54] - Stock-based compensation for the nine months ended September 30, 2024, was $808,362, compared to $174,440 in 2023, indicating a significant increase of 363.5%[53] - The unrecognized stock-based compensation as of September 30, 2024, was $4,871,597, indicating potential future expenses related to stock options[53] - The Company executed a simple agreement for future equity (SAFE) with MDB Capital Holdings LLC for $785,000 and with Paul Opgenorth for $15,000, totaling $800,000 funded as of September 30, 2024[81] Legal and Compliance - The company has no pending or threatened legal claims as of September 30, 2024, which may positively impact its operational stability[61] - The company has met all development milestones under its License Agreement with The Regents of the University of California as of September 30, 2024[69] - Payments made to The Regents in connection with the License Agreement totaled $337,847 from 2019 to September 30, 2024[71] Future Outlook - As of September 30, 2024, the company had working capital of approximately $9,941,977, which is expected to be sufficient to pursue operational objectives[19] - The company does not currently expect significant impacts from supply chain issues or inflation on its business activities[63] - Future payments due under operating leases as of September 30, 2024, total $1,733,274, with a weighted average discount rate of 7.88%[80]