Exicure(US:XCUR)2025-11-07 21:18Financial Performance - Total revenue for the nine months ended September 30, 2025, was $500,000, compared to no revenue for the same period in 2024[21]. - The net loss for the three months ended September 30, 2025, was $2,437,000, compared to a net loss of $1,091,000 for the same period in 2024, indicating an increase in loss of approximately 123.8%[25]. - As of September 30, 2025, Exicure, Inc. reported a net loss of $2,048,000, compared to a net loss of $2,520,000 for the same period in 2024, indicating an 18.7% improvement in losses year-over-year[34]. - The company reported a basic and diluted loss per common share of $0.39 for the three months ended September 30, 2025, compared to $0.57 for the same period in 2024[21]. - The Company reported total revenues of $0 for the three months ended September 30, 2025, compared to $50,000 for the same period in 2024[104]. - The Company incurred a total operating expense of $2,391,000 for the three months ended September 30, 2025, compared to $2,572,000 for the same period in 2024[104]. Assets and Liabilities - Total current assets decreased from $13,673,000 on December 31, 2024, to $5,439,000 on September 30, 2025, representing a decline of approximately 60.2%[19]. - Cash and cash equivalents decreased from $12,508,000 on December 31, 2024, to $4,438,000 on September 30, 2025, a decline of about 64.6%[19]. - The accumulated deficit increased from $199,264,000 on December 31, 2024, to $201,312,000 on September 30, 2025, reflecting a rise of approximately 1%[19]. - Total liabilities increased slightly from $8,284,000 on December 31, 2024, to $8,340,000 on September 30, 2025[19]. - As of September 30, 2025, total financial liabilities measured at fair value are $5,787,000, all classified as Level 3 liabilities[115]. Cash Flow and Operating Activities - The company experienced a net cash used in operating activities of $7,408,000 for the nine months ended September 30, 2025, significantly higher than the $2,065,000 used in the same period of 2024[34]. - Cash, cash equivalents, and restricted cash at the end of the period were $4,438,000, down from $12,508,000 at the beginning of the period, reflecting a decrease of 64.6%[34]. - The company expects to incur significant expenses and negative cash flows for the foreseeable future, necessitating additional funding[51]. Strategic Alternatives and Uncertainties - The company has substantial uncertainties regarding its ability to raise additional capital needed to fund operations and strategic alternatives due to a lack of revenue source[12]. - The company is exploring strategic alternatives to maximize stockholder value, which may involve unexpected costs and liabilities[12]. - As of September 30, 2025, Exicure's management expressed substantial doubt about the company's ability to continue as a going concern due to insufficient cash to fund operations[50]. Acquisitions and Collaborations - Exicure acquired GPCR Therapeutics USA Inc. for $1,600,000, which included the purchase of 6,000,000 common shares[40]. - The company entered into a License and Collaboration Agreement with GPCR, requiring milestone payments and recurring royalty payments based on future sales[41]. - 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[42]. - The total purchase price 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[67]. - The assets acquired included cash and cash equivalents of $45,000, property and equipment valued at $626,000, and intangible assets worth $3,784,000, totaling $9,291,000[67]. - Goodwill recorded from the acquisition amounted to $3,340,000, reflecting the excess of the purchase price over the net fair value of identifiable assets acquired[67]. Legal Proceedings and Settlements - The settlement of the securities class action lawsuit includes a payment of $5,625,000, fully covered by insurance[118]. - The Company is involved in multiple legal proceedings, including derivative lawsuits and a breach of contract claim, which may impact management resources[123]. - The Company recorded an accrual of approximately $1,100,000 for the unsatisfied portion of its self-insured retainer as of September 30, 2024[119]. Accounting and Financial Reporting - The company plans to adopt the new accounting standard ASU 2024-03 for the fiscal year 2027, which will require additional disclosures about specific expense categories[63]. - The company’s annual goodwill impairment review is performed on December 31 each year, assessing qualitative factors to determine potential impairment[61]. - The effective tax rate for the Company was 0% for the nine months ended September 30, 2025, due to generated tax losses and a full valuation allowance against deferred tax assets[107].