Financial Performance - Total revenue for the year ended December 31, 2024, was $500 million, compared to $0 in 2023[204]. - Net loss for 2024 was $9,701 million, a significant improvement from a net loss of $16,914 million in 2023, reflecting a reduction of about 43%[204]. - Basic and diluted loss per common share improved to $4.75 in 2024 from $10.55 in 2023[204]. - The total operating expenses for the Biotechnology segment were $12,732,000 for 2024, down from $14,996,000 in 2023[326]. Assets and Equity - Total assets increased to $15,056,000 in 2024 from $11,580,000 in 2023, representing a growth of 29%[201]. - Stockholders' equity improved to $6,772,000 in 2024, up from $3,031,000 in 2023, reflecting a 123% increase[201]. - Cash and cash equivalents rose significantly to $12,508,000 in 2024, compared to $816,000 in 2023, indicating a substantial increase in liquidity[201]. - Cash and cash equivalents at the end of 2024 were $12,508 million, up from $2,016 million at the end of 2023[210]. Liabilities and Deficits - The accumulated deficit increased to $199,264,000 in 2024 from $189,563,000 in 2023, showing a rise of approximately 5%[201]. - Current liabilities totaled $3,071,000 in 2024, compared to $2,510,000 in 2023, marking an increase of 22%[201]. - The company's accrued expenses and other current liabilities increased to $2,040 thousand in 2024 from $879 thousand in 2023, representing a 132.5% increase[264]. Strategic Initiatives - The company is exploring strategic alternatives to maximize stockholder value, which may involve unexpected costs and liabilities[15]. - The company plans to continue exploring strategic alternatives, including potential partnerships and acquisitions, to maximize stockholder value[215]. Risks and Concerns - The company has incurred significant losses and negative cash flows since inception, raising substantial doubt about its ability to continue as a going concern[194]. - The company anticipates significant expenses and negative cash flows in the foreseeable future, raising concerns about its ability to continue as a going concern[225]. - Future financial performance is subject to inherent risks and uncertainties, including macroeconomic conditions and potential management turnover[22]. Research and Development - Research and development expenses are charged as incurred, including employee-related expenses, third-party research costs, and lab supplies, indicating a significant ongoing investment in R&D[251]. Financing and Capital Structure - Additional financing will be necessary to support ongoing operations and strategic initiatives, with no assurance that such financing will be available[226]. - The company executed a promissory note for a loan of $300 thousand at 6.0% interest, due by May 3, 2025[281]. - The company executed another promissory note for a loan of $700 thousand at 6.0% interest, due by March 25, 2025[282]. - 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[265]. Stock and Equity Transactions - A reverse stock split at a ratio of 1-for-5 was executed on August 27, 2024, affecting the outstanding shares[221]. - The company has 6,026,841 shares of common stock outstanding as of December 31, 2024, up from 1,832,988 shares in 2023, reflecting a 228.5% increase[286]. - The Company entered into a securities purchase agreement with CBI USA to issue 680,000 shares of Common Stock at $8.00 per share, resulting in gross proceeds of $5,440,000[296]. - The Company agreed to file a registration statement for the resale of shares sold under the Securities Purchase Agreement, with a commitment to keep it effective for two years[298]. Tax and Regulatory Matters - The effective income tax rate for the year ended December 31, 2024, was (0.1)%, attributed to the Company generating tax losses and a full valuation allowance against deferred tax assets[329]. - The Company has no unrecognized tax benefits as of December 31, 2024, and is subject to examination by tax authorities for the years 2020 through 2024[338]. Asset Management - The company recognized a right of use asset of $8,931 thousand and a lease liability of $8,147 thousand for its Chicago office lease, with an incremental borrowing rate of 8.3%[274]. - The company closed an asset purchase agreement on September 27, 2024, selling certain biotechnology intellectual property for gross proceeds of $1,500, with additional royalties and license fees expected over 10 years[356].
Exicure(XCUR) - 2024 Q4 - Annual Report