EXICURE, INC. Annual Report - How They Did This Year

I’ve finished reviewing the latest filing for Exicure. The picture is clear, but it is very different from a typical growing company. Here is the breakdown.

1. What does this company do now?

Exicure has moved away from its roots as a biotech firm focused on "spherical nucleic acid" technology. In November 2022, the company ceased all research operations, reduced its workforce, and shifted its focus toward identifying "strategic alternatives."

Exicure no longer operates as a drug-discovery company. It currently functions as a public shell entity seeking a merger or acquisition. By mid-2024, the company had sold its remaining intellectual property to generate liquidity.

2. Financial performance: The "Exit" Strategy

Because the company is no longer developing drugs, it does not generate revenue from product sales. Instead, its financial activity is centered on liquidating past assets:

• Asset Sales: The company secured $500,000 from the termination of a licensing agreement, $637,000 from the sale of lab equipment, and $1.5 million from the sale of patents.
• The Bottom Line: For the year ending December 31, 2023, the company reported a loss of approximately $12.4 million. These losses reflect administrative expenses and the costs associated with winding down operations.

3. The "New" Direction

The company is currently in a transition phase. Its primary objective is to identify a private company interested in a reverse merger. By merging with Exicure, a private firm can bypass the traditional IPO process to become a publicly traded entity. The board is actively seeking a partner with an established business to assume control of Exicure’s public listing.

4. Financial health: Survival Mode

Exicure is in a fragile financial position. Management has noted "substantial doubt" regarding the company's ability to continue as a going concern due to ongoing losses.

• Market Value: As of mid-2025, the company’s market capitalization was approximately $16.4 million.
• Share Count: There are roughly 6.37 million shares outstanding. Following a 1-for-10 reverse stock split in 2023, the limited number of shares available for trading can result in significant price volatility.

5. Key risks

• The "Going Concern" Warning: Management has explicitly stated that the company may exhaust its remaining cash—which totaled approximately $2.1 million in the most recent report—before a merger can be finalized.
• Operational Uncertainty: There is no guarantee that a suitable merger partner will be found. If the company fails to secure a deal, it may be forced to dissolve, which could result in shareholders losing their entire investment as remaining assets are used to satisfy debts.
• Management Turnover: Following the resignation of the CEO and several board members in 2023, the company is operating with a reduced team. The success of the current strategy depends on this team’s ability to execute a complex corporate merger.

My take: This is no longer a biotech investment. It is a high-stakes bet on whether the company can secure a merger partner before its cash reserves are depleted. Proceed with extreme caution.