eXoZymes Reports $2.37 Million Net Loss in Q1 2026, Seeks $15 Million Public Offering

eXoZymes Inc. reported a net loss of $2.37 million for the first quarter of 2026, an increase of 27.7% compared to a net loss of $1.86 million in the same period of 2025. The company's total operating costs rose to $2.39 million, up 22.4% from $1.95 million year-over-year. This increase was primarily driven by a significant rise in research and development expenses, which surged by 95% to $1.12 million, reflecting heightened activity in developing the company's synthetic biology platform. General and administrative costs decreased slightly by 8% to $1.27 million, with notable reductions in professional fees and information technology expenses.

As of March 31, 2026, eXoZymes reported total assets of $4.02 million, a decrease of 32.7% from $5.97 million at the end of 2025. The decline in assets was largely attributed to a significant drop in cash and cash equivalents, which fell by 52.5% to $1.44 million. The company's liabilities also decreased slightly to $2.49 million, down 3.2% from the previous quarter, primarily due to lower long-term operating lease liabilities. However, the company's equity saw a substantial decline of 55% to $1.53 million, driven by the operational losses incurred during the quarter.

In terms of strategic developments, eXoZymes established a wholly owned subsidiary, NCTx LLC, in May 2025, aimed at developing a rare plant-derived compound relevant to metabolic health. The company also announced plans for a public offering of approximately $15 million in common stock, which is expected to support ongoing product development and commercialization efforts. This offering follows a previous initial public offering in November 2024, which raised approximately $15.9 million.

Operationally, eXoZymes has been focusing on expanding its research capabilities and enhancing its product offerings. The company has received significant grant funding, with the Department of Energy contributing 83.2% and the National Institutes of Health providing 16.8% of all grant reimbursements for the quarter. However, the company noted a decrease in grant funding, which impacted its research and development costs. As of March 31, 2026, eXoZymes had a working capital of approximately $507,586, which management indicated may not be sufficient to fund operations for the next twelve months without securing additional financing.

Looking ahead, eXoZymes is actively pursuing non-dilutive funding opportunities, including grants, and may seek institutional or bank financing to bolster its financial position. The company remains focused on its long-term goal of achieving profitable operations, although it acknowledges the challenges posed by its current cash burn rate and the need for additional financial resources.