Financial Performance - Total assets decreased from $23,328,000 on December 31, 2022, to $12,950,000 on September 30, 2023, representing a decline of approximately 44.8%[23] - Total current assets fell from $10,051,000 to $3,090,000, a decrease of about 69.1%[23] - Collaboration revenue for the three months ended September 30, 2023, was $0, compared to $2,016,000 for the same period in 2022, indicating a 100% decline[26] - Total operating expenses decreased from $7,221,000 in Q3 2022 to $3,317,000 in Q3 2023, a reduction of approximately 54.8%[26] - The net loss for the three months ended September 30, 2023, was $5,256,000, compared to a net loss of $5,160,000 for the same period in 2022, reflecting a slight increase of 1.9%[26] - Basic and diluted loss per common share for Q3 2023 was $0.61, compared to $1.04 for Q3 2022, showing an improvement of approximately 41.3%[26] - The net loss for the nine months ended September 30, 2023, was $15,427,000, compared to a net loss of $20,978,000 for the same period in 2022, representing a 26% improvement[38] - Total revenue for the three months ended September 30, 2023, was $0.0 million, a decrease of $2.0 million, or 100%, from $2.0 million in the same period of 2022[155] - Total revenue for the nine months ended September 30, 2023, was $0.0 million, a decrease of $7.1 million, or 100%, from $7.1 million in the same period of 2022[163] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash at the end of the period were $2,122,000, down from $9,777,000 at the beginning of the period[40] - The company reported a net cash used in operating activities of $9,541,000 for the nine months ended September 30, 2023, compared to $28,382,000 for the same period in 2022, indicating a reduction of 66%[38] - The company has substantial doubt about its ability to continue as a going concern and will require substantial additional funding in the near term[139] - Cash and cash equivalents decreased from $0.9 million as of September 30, 2023, to approximately $0.2 million as of April 30, 2024[140] - Net cash used in operating activities was $9.5 million for the nine months ended September 30, 2023, a decrease of $18.8 million from $28.4 million in the same period of 2022, attributed to the suspension of R&D activities and reduced headcount[173] - The company reported net cash used in investing activities of $1.8 million for the nine months ended September 30, 2023, compared to net cash provided of $4.5 million in 2022, indicating a decrease of $6.3 million[175] - Net cash provided by financing activities was $3.7 million for the nine months ended September 30, 2023, primarily due to a Private Placement closed in February 2023[176] Strategic Alternatives and Risks - The company has substantial uncertainties regarding its ability to raise additional capital needed to fund operations and strategic alternatives[13] - The company is exploring strategic alternatives to maximize stockholder value, but faces risks related to identifying partners and securing funding[13] - The company is exploring transactions with potential partners in industries unrelated to its historical operations[43] - The company has halted all research and development activities and is not expected to generate significant value from its historical assets[138] - The company may seek bankruptcy protection if unable to raise capital, potentially resulting in little to no value for stockholders[141] - The company has received deficiency notices from Nasdaq regarding compliance with minimum bid price and stockholders' equity requirements[146] Management and Workforce - The company has experienced significant turnover in senior management, which poses continuity risks and may impair its ability to raise capital[20] - The company engaged in a significant reduction in force and suspended preclinical activities in September 2022, exploring strategic alternatives to maximize stockholder value[43] - The company reduced approximately 66% of its workforce as part of a strategic plan to decrease expenses and extend cash runway[142] Equity and Stockholder Information - The company reported a total stockholders' equity of $4,498,000 as of September 30, 2023, down from $14,922,000 at the end of 2022, a decrease of about 69.9%[23] - The balance of common stock increased from 4,965,901 shares at January 1, 2023, to 8,650,515 shares at September 30, 2023, reflecting an increase of approximately 74%[32] - The company has 8,650,515 shares of common stock issued and outstanding as of September 30, 2023, compared to 4,965,901 shares as of December 31, 2022[75] - CBI USA and its affiliates beneficially own 45% of the outstanding shares of Common Stock, with DGP expected to sell its remaining shares by June 30, 2024[79] Expenses and Cost Management - Equity-based compensation expenses for the nine months ended September 30, 2023, totaled $1,327,000, an increase from $1,141,000 in the prior year[38] - General and administrative expense for the nine months ended September 30, 2023, was $11.2 million, an increase of $2.4 million, or 27%, from $8.8 million for the same period in 2022[165] - The company has engaged in significant cost reductions, but further cost-cutting measures are limited, necessitating substantial additional financing in the near term[51] Asset Management - The company recognized a loss of $920 from the sale of scientific equipment during the nine months ended September 30, 2023[62] - The company impaired the entire $2 million amount of convertible securities, recognizing them at a fair value of $0 as of September 30, 2023[161] - The total financial assets measured at fair value as of September 30, 2023 were $659,000, down from $1,612,000 at the end of 2022[118] Compliance and Reporting - The company received a delinquency notification for not filing its third quarter Form 10-Q by the deadline, which is expected to be cured by the filing[154] - The company has irrevocably elected not to take advantage of the extended transition period under the JOBS Act, committing to adopt new accounting standards as required for public companies[181]
Exicure(XCUR) - 2023 Q3 - Quarterly Report