Exicure Reports Improved Financials, Reduced Losses, and Ongoing Efforts to Secure Additional Financing

Exicure, Inc., an early-stage biotechnology company focused on developing nucleic acid therapies targeting RNA, reported significant financial developments in its 10-Q filing for the nine months ended September 30, 2024. The company generated revenue of $500,000 during this period, a notable increase from $0 in the same period of 2023. This revenue was primarily attributed to a licensing agreement for the development of cavrotolimod for hepatitis, which included an upfront payment of $500,000.

Total operating expenses for the nine months ended September 30, 2024, were $5.1 million, a substantial decrease of 62% from $13.5 million in 2023. General and administrative expenses also saw a significant reduction, falling to $4.0 million from $11.2 million, reflecting a 64% decrease. The operating loss improved to $(4.6 million) compared to $(13.5 million) in the prior year, marking a 66% improvement. The net loss for the nine months was $(2.5 million), a significant reduction from $(15.4 million) in 2023, indicating an 84% improvement.

The company reported total current assets of $2.6 million as of September 30, 2024, up from $2.0 million at the end of 2023. However, cash and cash equivalents decreased to $343,000 from $816,000 during the same period. Total current liabilities increased to $3.7 million from $2.5 million, with accrued expenses and other current liabilities rising sharply to $2.3 million from $879,000.

Exicure has faced challenges, including a substantial doubt about its ability to continue as a going concern due to expected significant expenses and negative cash flows. The company has engaged in cost reductions and is exploring strategic alternatives, including potential partnerships, to maximize stockholder value. A reverse stock split of 1-for-5 was executed on August 27, 2024, to comply with Nasdaq listing requirements, as the company is currently not in compliance with the minimum stockholders' equity requirement.

In terms of financing, Exicure raised $1.0 million from short-term borrowing during the nine months ended September 30, 2024, compared to no proceeds in the same period of 2023. The company is actively seeking additional financing to support its operations, with a common stock purchase agreement for $1.3 million already executed and a subsequent investment of $8.7 million pending stockholder approval.

Overall, Exicure's financial performance reflects a strategic shift towards cost management and revenue generation, albeit with ongoing liquidity concerns and the need for further financing to sustain operations.