Exicure, Inc. Files 10-Q/A Amendment for Q1 2023 Financial Restatement

TL;DR

<b>Exicure, Inc. amended its Q1 2023 10-Q filing to reclassify $0.6 million in expenses from R&D to G&A, with no impact on net loss.</b>

AI Summary

EXICURE, INC. (XCUR) filed a Amended Quarterly Report (10-Q/A) with the SEC on May 16, 2024. Exicure, Inc. restated its Q1 2023 financial results due to a reclassification of approximately $0.6 million in expenses. The reclassified expenses were moved from Research and Development to General and Administrative. These expenses primarily consisted of legal costs and separation payments. The restatement had no impact on the net loss as of March 31, 2023. No other financial statements in the original report were affected by this correction.

Why It Matters

For investors and stakeholders tracking EXICURE, INC., this filing contains several important signals. This amendment clarifies expense allocation, ensuring more accurate reporting of operational costs. The correction demonstrates a commitment to financial transparency and adherence to reporting standards.

Risk Assessment

Risk Level: low — EXICURE, INC. shows low risk based on this filing. The risk is low because the correction involved a reclassification of expenses with no impact on the net loss or other financial statements, indicating a minor accounting adjustment.

Analyst Insight

Investors should review the amended filing to understand the specific nature of the reclassified expenses and confirm the lack of impact on overall financial performance.

Key Numbers

• 0.6 — Million USD (Amount of expenses reclassified from R&D to G&A.)
• 2023-03-31 — As of Date (Net loss was unaffected as of this date.)

Key Players & Entities

• Exicure, Inc. (company) — Filer of the 10-Q/A amendment.
• 0001698530-24-000027 (other) — Accession number for the filing.
• 20230331 (date) — Conformed period of report.
• $0.6 million (dollar_amount) — Amount of expenses reclassified.
• March 31, 2023 (date) — Date as of which net loss was unaffected.

FAQ

Risk Factors

• Correction of Financial Statements [low — financial]: The company restated financial results due to a reclassification of approximately $0.6 million of expenses from research and development to general and administrative, primarily related to legal costs and separation payments.

Industry Context

Exicure, Inc. operates in the pharmaceutical preparations industry, focusing on the development of treatments.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial reports to the SEC.

What Investors Should Do

1. Review the detailed breakdown of the reclassified expenses in the 10-Q/A filing.
2. Assess the company's internal controls and accounting procedures based on this correction.
3. Monitor future filings for any recurring expense reclassification issues.

Key Dates

• 2024-05-16: Filing Date — Filing of the 10-Q/A amendment.
• 2023-03-31: Reporting Period End — Period for which financial results were restated.

Glossary

10-Q/A

An amended quarterly report filed with the SEC. (Indicates a correction or supplement to a previously filed quarterly report.)

Research and Development (R&D)

Expenses incurred in the process of discovering, evaluating, and developing new products or processes. (The reclassification impacts how these specific costs are categorized.)

General and Administrative (G&A)

Expenses related to the overall management and operation of a company, not directly tied to a specific product or service. (The reclassification moves expenses into this category.)

Year-Over-Year Comparison

This is an amended filing (10-Q/A) to correct a previous filing, specifically addressing an expense reclassification for the first quarter of 2023.

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share XCUR The Nasdaq Stock Market
• $0.6 million — o longer be relied upon. Approximately $0.6 million of expenses in the first quarter of 202

Filing Documents

• xcur-20230331.htm (10-Q/A) — 992KB
• exicureexhibit311-33123.htm (EX-31.1) — 8KB
• exicureexhibit321-33123.htm (EX-32.1) — 7KB
• 0001698530-24-000027.txt (&nbsp;) — 5691KB
• xcur-20230331.xsd (EX-101.SCH) — 51KB
• xcur-20230331_cal.xml (EX-101.CAL) — 56KB
• xcur-20230331_def.xml (EX-101.DEF) — 210KB
• xcur-20230331_lab.xml (EX-101.LAB) — 564KB
• xcur-20230331_pre.xml (EX-101.PRE) — 396KB
• xcur-20230331_htm.xml (XML) — 670KB

, Item 1. Financial Statements

Part I, Item 1. Financial Statements

, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

, Item 4. Controls and Procedures

Part I, Item 4. Controls and Procedures

, Item 1A. Risk Factors

Part II, Item 1A. Risk Factors

, Item 6. Exhibits

Part II, Item 6. Exhibits EXICURE, INC. QUARTERLY REPORT ON FORM 10-Q TABLE OF CONTENTS

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 9

Financial Statements

Item 1. Financial Statements 9 Unaudited Condensed Consolidated Balance Sheets 9 Unaudited Condensed Consolidated Statements of Operations 10 Unaudited Condensed Consolidated Statements of Comprehensive Loss 11 Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity 12 Unaudited Condensed Consolidated Statements of Cash Flows 14 Notes to Unaudited Condensed Consolidated Financial Statements 16

Management's Discussion and Analysis and Results of Operations

Item 2. Management's Discussion and Analysis and Results of Operations 34

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 41

Controls and Procedures

Item 4. Controls and Procedures 42

- OTHER INFORMATION

PART II - OTHER INFORMATION 44

Legal Proceedings

Item 1. Legal Proceedings 44

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 56

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 56

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 56

Other Information

Item 5. Other Information 56

Exhibits

Item 6. Exhibits 57

Signatures

Signatures 59 4 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains express or implied "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"). All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "could," "will," "would," "should," "expect," "plan,", "anticipate," "believe," "estimate," "intend," "predict," "seek," "contemplate," "project," "continue," "potential," "ongoing" or the negative of these terms or other comparable terminology. Forward-looking statements also include the assumptions underlying or relating to such statements. Although we believe that the expectations reflected in the forward-looking statements contained herein are reasonable, such expectations or any of the forward-looking statements may prove to be incorrect and actual results could differ materially from those projected or assumed in the forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to inherent risks and uncertainties, including, but not limited to, the risk factors described in the "Risk Factor Summary" below and set forth in Part II, Item 1A "Risk Factors" below and for the reasons described elsewhere in this Quarterly Report on Form 10-Q. All forward-looking statements and reasons why results may differ included in this report are made as of the date hereof and we do not intend to update any forward-looking statements except as required by law. These forwa

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. EXICURE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) March 31, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 9,960 $ 8,577 Prepaid expenses and other assets 1,317 1,474 Total current assets 11,277 10,051 Property and equipment, net 2,279 2,530 Right-of-use asset 7,077 7,257 Other noncurrent assets 3,310 3,490 Total assets $ 23,943 $ 23,328 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 452 361 Accrued expenses and other current liabilities 1,477 1,278 Common stock warrant liability 800 — Total current liabilities 2,729 1,639 Lease liability, noncurrent 6,595 6,767 Total liabilities 9,324 8,406 Stockholders' equity: Preferred stock, $ 0.0001 par value per share; 10,000,000 shares authorized, no shares issued and outstanding, March 31, 2023 and December 31, 2022 — — Common stock, $ 0.0001 par value per share; 200,000,000 shares authorized, 8,371,462 issued and outstanding, March 31, 2023; 4,965,901 issued and outstanding, December 31, 2022 1 — Additional paid-in capital 191,674 187,571 Accumulated deficit ( 177,056 ) ( 172,649 ) Total stockholders' equity 14,619 14,922 Total liabilities and stockholders' equity $ 23,943 $ 23,328 See accompanying notes to the unaudited condensed consolidated financial statements. 9 Table of Contents EXICURE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) Three Months Ended March 31, 2023 (Restated) 2022 Revenue: Collaboration revenue $ — $ 2,565 Total revenue — 2,565 Operating expenses: Research and development expense 1,423 7,140 General and administrative expense 3,116 3,162 Total operating expenses 4,539 10,302 Operating loss ( 4,539 ) ( 7,737 ) Other income (expense), net: Dividend income 17 2 Interest income 11 2 Interest expense — ( 595 ) Other income (expense), n

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