Exicure(US:XCUR)2025-08-08 20:21Financial Performance - Total revenue for the six months ended June 30, 2025, was $0, down from $500,000 in the same period of 2024[22] - Operating expenses for the three months ended June 30, 2025, were $2,509,000, compared to $1,235,000 for the same period in 2024, reflecting a 103% increase[22] - Net loss for the three months ended June 30, 2025, was $2,621,000, compared to a net loss of $600,000 for the same period in 2024[22] - The company reported a comprehensive loss of $2,520,000 for the three months ended June 30, 2025[24] - As of June 30, 2025, Exicure, Inc. reported a net income of $389,000, a significant improvement compared to a net loss of $1,429,000 for the same period in 2024[33] - The company experienced a net cash used in operating activities of $3,880,000 for the six months ended June 30, 2025, compared to $1,616,000 for the same period in 2024, indicating increased cash outflow[33] - The Company reported total revenues of $0 for the three months ended June 30, 2025, compared to $50,000 for the same period in 2024[101] - The Company incurred a net loss of $2,621,000 for the three months ended June 30, 2025, compared to a net loss of $600,000 for the same period in 2024[105] Assets and Liabilities - Total assets increased to $18,738,000 as of June 30, 2025, compared to $15,056,000 on December 31, 2024, representing a 24% increase[20] - Cash and cash equivalents decreased to $7,858,000 from $12,508,000, a decline of 37%[20] - Accumulated deficit increased to $198,875,000 as of June 30, 2025, from $199,264,000 on December 31, 2024[20] - Stockholders' equity rose to $8,863,000 as of June 30, 2025, up from $6,772,000 at the end of 2024, marking a 31% increase[20] - Exicure's cash, cash equivalents, and restricted cash decreased to $7,858,000 by the end of June 2025, down from $12,508,000 at the beginning of the period[33] - The total purchase price consideration for the acquisition of GPCR USA was $7,881,000, which included $1,635,000 in cash, $500,000 in equity consideration, and $5,246,000 in fair value of contingent consideration[64] - The liabilities assumed during the acquisition amounted to $1,410,000, which included accounts payable of $606,000 and accrued expenses of $92,000[67] Research and Development - Research and development expenses for the six months ended June 30, 2025, totaled $1,743,000, with no expenses reported in the same period of 2024[22] - Research and development expenses for the six months ended June 30, 2025, were $1,743,000, while general and administrative expenses were $3,731,000, compared to $0 and $2,570,000, respectively, for the same period in 2024[101] - GPCR USA is conducting a Phase 2 clinical trial involving GPC-100 for blood cancer patients, with results expected to be announced in Q4 2025[41] Strategic Alternatives and Uncertainties - 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, including private company acquisitions and raising additional capital, to maximize stockholder value[38] - As of June 30, 2025, Exicure's management expressed substantial doubt about the company's ability to continue as a going concern without additional financing[51] Acquisitions and Agreements - The company acquired GPCR Therapeutics USA Inc. for $1,600,000, which included the purchase of 6,000,000 common shares[39] - Exicure entered into a License and Collaboration Agreement with GPCR, requiring an initial payment of $500,000 and milestone payments based on clinical trial achievements[40] - Goodwill recorded from the acquisition was $3,340,000, representing the excess of the purchase price over the net fair value of identifiable assets acquired[59] Legal and Compliance - A settlement of $5,625 million was approved in a securities class action lawsuit, fully covered by insurance[112] - The Company is involved in ongoing litigation, including a complaint from a former employee, which is currently in the discovery phase[118] - The Company accrued $411,000 in penalties due to not filing a registration statement by the Filing Deadline, as per the Registration Rights Agreements[96] Shareholder Information - The weighted-average basic common shares outstanding increased to 6,317,744 as of June 30, 2025, from 1,730,242 as of June 30, 2024[105] - As of June 30, 2025, the Company had 6,317,793 shares of Common Stock issued and outstanding, an increase from 6,026,841 shares as of December 31, 2024[87] - The Company executed two Debt for Equity Exchange Agreements on September 12, 2024, converting $300,000 and $700,000 of debt into 101,991 and 237,223 shares of Common Stock, respectively[85] - The Company entered into multiple Common Stock Purchase Agreements, including a sale of 2,900,000 shares to HiTron for $8,700,000 at $3.00 per share[90] - The Company had authorized 200,000,000 shares of Common Stock, with no preferred stock issued or outstanding as of June 30, 2025[86] Tax and Financial Reporting - The effective tax rate for the Company was 0% for the six months ended June 30, 2025, due to generated tax losses and a full valuation allowance against deferred tax assets[102] - The company has not yet adopted the new income tax disclosure standard (ASU 2023-09), which will be effective for fiscal years beginning after December 15, 2024[63] - The company plans to adopt the new comprehensive income reporting standard (ASU 2024-03) when it becomes effective in the fiscal year 2027[61] Miscellaneous - The company recorded depreciation and amortization expense of $132,000 for the six months ended June 30, 2025, compared to $14,000 for the same period in 2024[69] - The company’s total lease costs for the six months ended June 30, 2025, were $282,000, a decrease from $308,000 in the same period of 2024[79] - The Company has entered into a consulting agreement with Paul Kang, with payments of $12.5 million monthly starting February 2025[121] - The Company recorded an accrual of approximately $1,100 million for the unsatisfied portion of its self-insured retainer as of September 30, 2024[115]