eXoZymes Reports $4.22 Million Net Loss and Significant Financial Challenges

eXoZymes Inc. reported significant financial challenges in its latest quarterly filing for the period ending June 30, 2025. The company recorded a net loss of $4.22 million, a 78% increase from the $2.37 million loss reported in the same period last year. This resulted in a net loss per share of $0.50, compared to $0.38 in the prior year. The total operating costs surged to $4.50 million, up 92.5% from $2.34 million in the previous year, primarily driven by increased general and administrative expenses and research and development costs.

The company's total assets decreased by 25.8% to $9.68 million from $13.03 million at the end of 2024. This decline was largely attributed to a significant drop in cash and cash equivalents, which fell by 28.1% to $6.99 million. Grants receivable also saw a sharp decline of 65.1%, reflecting the completion of certain grants and the timing of grant drawdowns. In contrast, total liabilities decreased by 6.6% to $2.44 million, primarily due to the elimination of amounts due to affiliates.

In terms of operational developments, eXoZymes has been actively expanding its workforce, which contributed to a 50% increase in compensation expenses. The company also established a new wholly owned subsidiary, NCTx LLC, focused on developing a rare plant-derived compound relevant to metabolic health. Additionally, eXoZymes has been awarded a $3 million share of a $9.2 million grant from the U.S. National Science Foundation, aimed at enhancing the scalability of its cell-free systems.

Looking ahead, eXoZymes remains focused on advancing its research and development initiatives, although it acknowledges substantial doubt about its ability to continue as a going concern without securing additional funding. The company plans to utilize its available working capital for ongoing operations and is exploring various funding options, including potential equity sales and grants. Management has indicated that while it believes it has sufficient funds for the near term, the need for additional financial support remains critical for long-term sustainability.