Breaking Down Exicure, Inc. (XCUR) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and wondering about the financial stability of Exicure, Inc. (XCUR)? As of December 31, 2024, Exicure's cash position significantly improved, reaching $12.5 million compared to just $0.8 million the previous year. However, with $0 spent on R&D in 2024 (down from $1.4 million in 2023) and a net loss of $9.7 million, set against 2023's $16.9 million, what does this mixed financial picture mean for its future? Dive in to explore the key insights that can help you make informed decisions.

Exicure, Inc. (XCUR) Revenue Analysis

Understanding Exicure, Inc.'s (XCUR) revenue streams involves examining its primary revenue sources, year-over-year revenue growth, the contribution of different business segments, and any significant changes in these streams.

In 2024, Exicure's total operating revenue was reported at $0.5 million. This revenue was generated from a patent license agreement related to developing cavrotolimod for potential hepatitis treatment with a private biopharmaceutical company. Under this agreement, the biopharmaceutical company received an exclusive license to all of Exicure's relevant patents in the field of hepatitis.

A comparison of Exicure's revenue over the past few years reveals the following trends:

• 2024: $0.5 million
• 2023: No revenue reported.
• 2022: $28.83 million

The year-over-year revenue growth rate shows significant fluctuations:

• 2022: A decrease of 6,068.12%.
• 2021: A decrease of 102.91%.
• 2020: An increase of 1,181.87%.

These figures highlight the volatile nature of Exicure's revenue, reflecting its reliance on specific agreements and strategic shifts.

Historically, Exicure has focused on developing nucleic acid therapies. However, in September 2022, the company underwent a strategic shift, suspending preclinical activities and halting all research and development. This restructuring significantly impacted the company's revenue streams.

In February 2024, Exicure received an upfront payment from a licensing agreement related to a historical drug candidate. Additionally, in the third quarter of 2024, the company sold its historical biotechnology intellectual property and other assets, recognizing significant other income.

As of December 31, 2024, Exicure had seven full-time employees engaged in finance and general management activities, a stark contrast to its previous focus on research and development. The company does not currently own or operate manufacturing facilities and has no manufacturing or supply needs following its restructuring.

Despite these efforts, Exicure's management has expressed substantial doubt about the company's ability to continue as a going concern without additional financing. The company is actively exploring strategic alternatives to maximize stockholder value, including potential transactions with partners interested in joining an existing, publicly-traded organization.

Here's a brief overview of Exicure's financial highlights for 2024:

• Total Revenue: $0.5 million, generated from a patent license agreement.
• Operating Loss: $12.2 million, a decrease of $2.8 million compared to the previous year.
• Net Loss: $9.7 million, a decrease of $7.2 million from the previous year.
• Basic and Diluted Loss Per Common Share: $4.75.

Here is a table summarizing Exicure's Revenue from 2020-2024:

For more detailed insights, you can refer to this comprehensive analysis: Breaking Down Exicure, Inc. (XCUR) Financial Health: Key Insights for Investors.

Exicure, Inc. (XCUR) Profitability Metrics

Analyzing Exicure, Inc.'s (XCUR) profitability involves looking at several key metrics that reveal how efficiently the company generates profit from its revenues and operations. These include gross profit, operating profit, and net profit margins. Understanding these figures and their trends over time provides critical insights into the company's financial health.

As of the latest information available, Exicure, Inc. has faced significant challenges in achieving profitability. Here's a breakdown:

• Gross Profit: This is calculated by deducting the cost of goods sold (COGS) from the total revenue. For Exicure, Inc., maintaining a positive gross profit has been difficult due to high research and development costs and, at times, limited revenue streams.
• Operating Profit: This is derived by subtracting operating expenses (such as administrative and R&D costs) from the gross profit. Exicure, Inc.'s operating profit has often been negative, reflecting substantial investments in its technology platform and drug development programs.
• Net Profit: This is the profit remaining after all expenses, including interest and taxes, are deducted from total revenue. The net profit margin, which is net profit divided by total revenue, provides a clear picture of overall profitability. For Exicure, Inc., this margin has been consistently negative, highlighting the challenges in achieving overall profitability.

To provide a clearer picture, let's consider a hypothetical, yet realistic, scenario based on available data:

In this scenario, while Exicure, Inc. generates $1.0 million in revenue, the high operating expenses, particularly in R&D, result in a significant operating loss of $4.4 million and a net loss of $4.5 million. This illustrates the financial strain the company faces as it invests heavily in its pipeline.

Comparing these profitability ratios with industry averages is crucial. The biotechnology industry often sees companies with negative profitability in early stages due to high R&D costs. However, sustained negative margins can raise concerns about long-term viability. Investors should monitor Exicure, Inc.'s ability to manage costs, secure additional funding, and advance its pipeline to improve profitability.

Operational efficiency, particularly cost management and gross margin trends, is vital for Exicure, Inc. Controlling costs while maximizing revenue opportunities will be key to improving its financial standing. The company's ability to strike this balance will significantly influence investor confidence and long-term success.

For more insights into Exicure, Inc.'s investor profile, see: Exploring Exicure, Inc. (XCUR) Investor Profile: Who’s Buying and Why?

Exicure, Inc. (XCUR) Debt vs. Equity Structure

Understanding how Exicure, Inc. (XCUR) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, its debt-to-equity ratio, and recent financing activities.

As of the fiscal year 2024, Exicure, Inc. (XCUR) showcases the following debt structure:

• Long-term and Short-term Debt: Details on Exicure, Inc.'s (XCUR) long-term and short-term debt can provide insights into its financial obligations and liquidity.
• Debt-to-Equity Ratio: This ratio is a key metric for assessing financial leverage. A higher ratio indicates that the company relies more on debt financing compared to equity.

Exicure, Inc. (XCUR) reported a debt to equity ratio of 3.2 as of December 31, 2023, according to the most recent 10-K filing. This ratio indicates a substantial reliance on debt relative to equity. The balance sheets from the 10-K exhibit also show total liabilities significantly outweighing total equity.

Recent activities, such as debt issuances or refinancing, can significantly impact Exicure, Inc.'s (XCUR) capital structure. Keep an eye on the latest financial news and filings for any such developments.

Exicure, Inc. (XCUR) navigates the balance between debt and equity to fund its operations and growth initiatives. The specifics of this balance are detailed in their financial statements.

For more in-depth analysis, visit: Breaking Down Exicure, Inc. (XCUR) Financial Health: Key Insights for Investors

Exicure, Inc. (XCUR) Liquidity and Solvency

When evaluating Exicure, Inc.'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations. Key metrics and trends provide insights into the company's financial stability.

Here's an overview of Exicure, Inc.'s liquidity, focusing on key financial indicators:

• Current and Quick Ratios: These ratios measure Exicure's ability to cover its short-term liabilities with its current assets. A current ratio of greater than 1 indicates that the company has more current assets than current liabilities. The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity.
• Analysis of Working Capital Trends: Working capital, calculated as current assets minus current liabilities, indicates the company's operational efficiency and short-term financial health. Monitoring the trend in working capital helps investors understand whether the company's liquidity position is improving or deteriorating.
• Cash Flow Statements Overview: A review of the cash flow statements, specifically focusing on cash flow from operating, investing, and financing activities, offers a comprehensive view of how Exicure generates and uses cash. Positive cash flow from operations is generally a good sign, indicating that the company's core business is generating sufficient cash to cover its expenses.

For a deeper understanding of Exicure's strategic direction, explore their Mission Statement, Vision, & Core Values of Exicure, Inc. (XCUR).

A detailed look into these elements will equip investors with a clear perspective on Exicure’s financial resilience and strategic financial management.

Exicure, Inc. (XCUR) Valuation Analysis

Determining whether Exicure, Inc. (XCUR) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these critical areas to provide a clearer investment perspective.

Currently, information on traditional valuation metrics such as price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios for Exicure, Inc. (XCUR) is limited or not applicable due to the company's financial status, particularly its lack of consistent profitability. For companies in developmental stages, especially in the biotechnology sector, these standard ratios may not provide an accurate reflection of potential future value. Investors often rely on alternative metrics and qualitative assessments, such as pipeline progress, partnership agreements, and technological advancements, to gauge valuation.

Analyzing Exicure, Inc.'s stock price trends over the last 12 months provides insight into market sentiment and historical performance. Keep in mind that stock performance can be highly volatile and influenced by factors beyond the company's financials, including clinical trial results, regulatory announcements, and overall market conditions. As of April 2025, the context of recent news and developments significantly shapes the interpretation of these trends.

Given Exicure, Inc.'s status, dividend yield and payout ratios are not applicable, as the company is not currently distributing dividends. Companies like Exicure, Inc., which are focused on research and development, typically reinvest earnings to fund further growth initiatives rather than distributing them as dividends.

Analyst consensus on Exicure, Inc.'s stock valuation can offer valuable insights. These ratings, typically expressed as buy, hold, or sell, represent the collective opinion of financial analysts who cover the company. However, it's important to consider that analyst ratings are subjective and can vary widely. Investors should use these ratings as one component of their overall due diligence, alongside their own independent research and analysis.

For a deeper understanding of the company's mission, vision, and core values, refer to Mission Statement, Vision, & Core Values of Exicure, Inc. (XCUR).

Exicure, Inc. (XCUR) Risk Factors

Investing in biotechnology companies like Exicure, Inc. (XCUR) involves inherent risks that potential investors need to carefully consider. These risks can stem from both internal factors specific to the company and external factors related to the industry and broader market conditions. Understanding these risks is crucial for making informed investment decisions. You can further explore Exicure's financial health at: Breaking Down Exicure, Inc. (XCUR) Financial Health: Key Insights for Investors

Internal and External Risks:

Exicure, Inc. faces a variety of challenges that could impact its financial stability and future prospects:

• Industry Competition: The biotechnology industry is highly competitive. Exicure faces competition from other companies, including larger and more established entities, that are also developing nucleic acid therapies.
• Regulatory Changes: The development and approval of pharmaceutical products are subject to extensive regulation by government agencies such as the FDA. Changes in these regulations can significantly impact the company's ability to bring its products to market.
• Market Conditions: Economic downturns or changes in investor sentiment towards the biotechnology industry can affect Exicure's ability to raise capital and maintain its stock price.

Operational, Financial, and Strategic Risks:

Recent financial reports and filings highlight several operational, financial, and strategic risks:

• Going Concern: Management has expressed substantial doubt about the company's ability to continue as a going concern without additional financing.
• Suspension of R&D Activities: Exicure completely suspended all research and development activities in September 2022. This cessation impacts the company's long-term growth prospects and its ability to develop new products.
• Liquidity Risks: A quick ratio of 0.2 indicates potential liquidity risks, suggesting that the company may have difficulty meeting its short-term obligations.
• Debt Load: A total-debt-to-equity ratio of 4.12 signifies a substantial debt load, which could strain the company's finances.

Mitigation Strategies:

Exicure is actively pursuing several strategies to mitigate these risks:

• Equity Financing: The company has been actively securing equity financing to bolster its financial stability and comply with Nasdaq's listing regulations. In November 2024, Exicure finalized equity financing agreements worth $10 million.
• Strategic Alternatives: Exicure is exploring strategic alternatives to maximize stockholder value, including potential partnerships with companies interested in joining an existing publicly-traded organization.
• Asset Purchase Agreement: The company sold samples of its clinical products and certain assets, including its biotechnology intellectual property, to generate revenue.

Financial Overview:

A snapshot of Exicure's recent financial performance reveals both challenges and efforts to improve its financial position:

Exicure, Inc. (XCUR) Growth Opportunities

Exicure, Inc. has been navigating a challenging financial landscape, but several potential growth drivers and strategic initiatives could shape its future.

As of December 31, 2024, Exicure's cash and cash equivalents were approximately $12.5 million. However, the company has expressed 'substantial doubt' about its ability to continue operations without additional financing.

Here's a breakdown of key aspects influencing Exicure, Inc.'s growth prospects:

• Strategic Initiatives: Exicure has been actively exploring strategic alternatives to maximize stockholder value. This includes:
  • The sale of historical biotechnology intellectual property and other assets.
  • Seeking transactions with potential partners interested in joining a publicly-traded organization.
• Acquisition: In January 2025, Exicure acquired GPCR Therapeutics USA Inc., which is conducting a Phase 2 clinical trial focused on blood cancer patients.

Exicure is exploring strategic alternatives to maximize stockholder value, including potential transactions with partners interested in joining a publicly-traded organization.

In February 2024, Exicure received an upfront payment from a licensing agreement for patents related to a historical drug candidate and sold its historical biotechnology intellectual property and other assets in the third quarter, recognizing significant other income.

In December 2024, Exicure secured $2 million through a share issuance from institutional investors and planned to raise approximately $2.4 million in the near term through further capital increases, with the total amount expected to be around $15 million. HiTron's total investment will be $10 million after the initial investment of $1.3 million closed in November. The share issuance price for HiTron is $3 per share. Once the second investment closes, HiTron will become Exicure's largest shareholder, owning over 50% of the company.

The company's Spherical Nucleic Acid (SNA) Technology represents a critical competitive advantage. The company held 17 granted patents across 8 unique technology platforms, with patent protection extending until 2038-2040.

The company reported a mixed financial picture for 2024:

• Cash position improved to $12.5 million as of December 31, 2024, compared to $0.8 million in 2023.
• Research and development expenses were $0 for 2024, down from $1.4 million in 2023.
• General and administrative expenses decreased to $5.4 million from $11.7 million in 2023.
• Net loss improved to $9.7 million in 2024 from $16.9 million in 2023.

Exicure's revenue for 2024 was $500,000.

One of Exicure's key programs is GPC-100, which is in a Phase 2 trial for multiple myeloma patients undergoing autologous stem cell transplant, with results expected in Q4 2025. Preliminary results presented at the 2024 ASH Annual Meeting were encouraging, with 100% of patients achieving successful CD34+ stem cell mobilization.

The global gene therapy market was valued at $4.7 billion in 2024, with a projected CAGR of 21.5% through 2030.

See more about the company’s values: Mission Statement, Vision, & Core Values of Exicure, Inc. (XCUR).