Financial Performance - The company reported a net loss of $1,091,000 for the three months ended September 30, 2024, compared to a net loss of $5,256,000 for the same period in 2023, representing a reduction of approximately 79.2%[13]. - The net loss for the nine months ended September 30, 2024, was $2,520, significantly improved from a net loss of $15,427 for the same period in 2023[18]. - Basic and diluted loss per common share for the nine months ended September 30, 2024, was $(1.36), compared to $(9.89) for the same period in 2023[88]. - The company incurred net losses of approximately $2.5 million and $15.4 million for the nine months ended September 30, 2024 and 2023, respectively[154]. Revenue and Expenses - The company had no revenue reported for the three months ended September 30, 2024, consistent with the same period in 2023, while total revenue for the nine months ended September 30, 2024, was $500,000[13]. - Operating expenses for the three months ended September 30, 2024, were $2,572,000, down from $3,317,000 in the same period of 2023, a decrease of about 22.4%[13]. - General and administrative expenses decreased to $4.0 million for the nine months ended September 30, 2024, a reduction of $7.2 million or 64% from $11.2 million in the same period of 2023[148]. - Total operating expenses for the three months ended September 30, 2024, were $2.6 million, down $745,000 or 22% from $3.3 million in the prior year[140]. - Research and development expenses were $0 for the nine months ended September 30, 2024, reflecting a decrease of $1.4 million or 100% from $1.4 million in the same period of 2023[147]. Assets and Liabilities - Total current assets increased to $2,600,000 as of September 30, 2024, compared to $2,024,000 on December 31, 2023, reflecting a growth of approximately 28.4%[11]. - Total liabilities rose to $9,086,000 as of September 30, 2024, up from $8,549,000 at the end of 2023, indicating an increase of about 6.3%[11]. - The company’s accumulated deficit increased to $192,083,000 as of September 30, 2024, compared to $189,563,000 at the end of 2023, reflecting an increase of about 1.3%[12]. - As of September 30, 2024, total stockholders' equity was $1,545, a decrease from $2,207 at June 30, 2024, reflecting a net loss of $1,091 for the quarter[14]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $343,000 as of September 30, 2024, from $816,000 on December 31, 2023, a decline of approximately 58.1%[11]. - The company reported a net cash used in operating activities of $2,065 for the nine months ended September 30, 2024, compared to $9,541 for the same period in 2023[18]. - Cash and cash equivalents were $0.3 million as of September 30, 2024, down from $0.8 million as of December 31, 2023[153]. - The company will need to obtain substantial additional funding in the near term to continue operations[162]. Going Concern and Compliance - The company is facing significant doubt about its ability to continue as a going concern due to the lack of a significant ongoing revenue source[5]. - The company is not in compliance with Nasdaq's requirement for stockholders' equity of at least $2,500,000 based on its September 30, 2024 balance sheet[122]. - The company has received multiple deficiency notices from Nasdaq regarding compliance with listing requirements, including minimum bid price and corporate governance[121]. - The company anticipates that if it cannot raise capital, it may seek bankruptcy protection and/or cease operations, potentially resulting in minimal value for stockholders[114]. Strategic Alternatives - The company is exploring strategic alternatives to maximize stockholder value, which may involve substantial uncertainties and risks, including the ability to secure funding and consummate transactions[5]. - The company has suspended all research and development activities and is exploring strategic alternatives to maximize stockholder value[22]. - The company is engaging in a broader exploration of strategic alternatives, including potential partnerships with other organizations[22]. Stock and Equity - The company issued 339,214 shares of common stock, resulting in an additional $1,018 in additional paid-in capital during the quarter[14]. - As of September 30, 2024, the company had 2,172,323 shares of common stock issued and outstanding, an increase from 1,832,988 shares as of December 31, 2023[59]. - The company completed a private placement in February 2023, issuing 680,000 shares of common stock at a purchase price of $8.00 per share, resulting in gross proceeds of $5.44 million[61]. - The company agreed to sell and issue 433,333 shares of common stock for $1,300 to HiTron Systems Inc. on November 6, 2024[120]. Other Income and Assets - The company recognized other income of $1,500 from the sale of its historical biotechnology intellectual property and other assets in the third quarter[110]. - The company recorded an accrual of approximately $1.14 million for the unsatisfied portion of its self-insured retainer as of September 30, 2024[95]. - The company received an upfront payment of $500 from a licensing agreement for patents related to a historical drug candidate in February 2024[110]. - The company sold certain assets for gross proceeds of $1.5 million, including spherical nucleic acid-related technology and clinical assets[151].
Exicure(XCUR) - 2024 Q3 - Quarterly Report