Financial Performance - Total revenue for the six months ended June 30, 2024, was $500,000, compared to $0 for the same period in 2023[17] - Operating loss for the three months ended June 30, 2024, was $(1,235,000), a decrease from $(5,642,000) in the same period of 2023[17] - Net loss for the six months ended June 30, 2024, was $(1,429,000), compared to $(10,171,000) for the same period in 2023[17] - The company reported a net loss of $600,000 for the three months ended June 30, 2024, compared to a net loss of $5,764,000 for the same period in 2023, indicating a significant reduction in losses[78] - For the six months ended June 30, 2024, the net loss was $1,429,000, down from $10,171,000 in the same period of 2023, reflecting improved financial performance[78] - The basic and diluted loss per share for the three months ended June 30, 2024, was $(0.07), a significant improvement from $(0.68) in the same period of 2023[78] Cash and Liquidity - Cash and cash equivalents decreased to $528,000 as of June 30, 2024, from $816,000 as of December 31, 2023[13] - The company's cash and cash equivalents as of June 30, 2024, were $0.5 million, indicating insufficient liquidity to continue operations[95] - The company raised gross proceeds of $5.4 million from a private placement on February 24, 2023, but these funds have been largely utilized for operational expenses[95] - Net cash used in operating activities for the six months ended June 30, 2024, was $1,616,000, a decrease from $8,129,000 for the same period in 2023[23] - The company expects to incur significant expenses and negative cash flows for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[121] - The company will need to obtain substantial additional funding in the near term to continue operations, with no certainty of obtaining such financing[126] Assets and Liabilities - Total assets decreased to $10,688,000 as of June 30, 2024, from $11,580,000 as of December 31, 2023[13] - Total liabilities increased to $9,075,000 as of June 30, 2024, compared to $8,549,000 as of December 31, 2023[13] - Total stockholders' equity decreased to $1,613,000 as of June 30, 2024, from $3,031,000 as of December 31, 2023[13] - The accrued expenses and other current liabilities totaled $846 million as of June 30, 2024, compared to $879 million as of December 31, 2023, indicating a decrease of about 3.8%[41] Expenses - The company reported a significant increase in general and administrative expenses to $2,571,000 for the six months ended June 30, 2024, from $8,758,000 for the same period in 2023[17] - General and administrative expense decreased to $1.2 million for the three months ended June 30, 2024, down 78% from $5.6 million in the same period of 2023[110] - Total operating expenses for the six months ended June 30, 2024, were $2.6 million, a decrease of 75% from $10.2 million in the same period of 2023[113] - Research and development expense was $0.0 million for the six months ended June 30, 2024, reflecting a 100% decrease from $1.4 million in the same period of 2023[116] Strategic Initiatives - The company is exploring strategic alternatives to maximize stockholder value, facing substantial uncertainties regarding potential partnerships and funding[5] - The company has halted all research and development activities and is focusing on licensing its intellectual property[26] - The company intends to seek financing through equity offerings, although obtaining such financing may be challenging given its current condition[96] - The company has received multiple deficiency notices from Nasdaq regarding compliance with listing requirements, including a minimum bid price rule[100] - The company has until September 16, 2024, to cure outstanding deficiencies to maintain its Nasdaq listing[104] Shareholder Information - The Company had 8,651,148 shares of common stock issued and outstanding as of June 30, 2024, a slight increase from 8,650,753 shares as of December 31, 2023[52] - CBI USA and its affiliates own 45% of the outstanding shares of common stock, with plans to exercise their rights to designate directors on the Company's board[56] - The Company completed a registered direct offering on December 16, 2021, raising gross proceeds of $11,478,000 and net proceeds of $10,226,000 after fees[59] Legal and Compliance - The company is currently entering the discovery phase of litigation related to a complaint filed by a former employee regarding their separation from the company[85] - The Northwestern University License Agreements were terminated on September 10, 2023, and October 3, 2023, due to alleged breaches related to development requirements[88] - The Company has accrued $191 million in liquidated damages related to the registration rights agreement due to delays in filing a registration statement[57] Financing Activities - The Company entered into two subscription agreements for convertible notes receivable totaling $2 million, with a yield to maturity of 4.5% per annum, maturing in May 2026[48] - On May 3, 2024, the Company executed a promissory note and received a loan of $300 million, with interest accruing at 6.0%[50] - The Company executed another promissory note on June 3, 2024, receiving a loan of $700 million from a related party, also at an interest rate of 6.0%[50]
Exicure(XCUR) - 2024 Q2 - Quarterly Report