0001493152-26-013563
SEC filingA challenging year marked by widening operating losses and significant cash burn, as the pre-revenue company invested in R&D and staffing while management explicitly flagged substantial doubt about its ability to continue as a going concern.
For the fiscal year ended December 31, 2025, eXoZymes reported an operating loss of -$9.7M, a 63.8% increase in deficit compared to the prior year's -$5.9M. Net income followed a similar trajectory, deepening to -$9.2M from -$5.9M in FY 2024. This widening loss reflects the company's strategic deployment of capital toward expanding production capabilities, staffing, and R&D initiatives. The reduction in grants receivable, driven by the completion of certain grants and timing of grant drawdowns, also contributed to the pressure on operating results. Diluted EPS of -$1.09, compared to -$0.89 in the prior year, underscores the per-share impact of these operational investments as the company scales its platform post-IPO.
Net cash used in operating activities improved to -$6.5M in FY 2025 from -$8.5M in FY 2024, indicating more efficient cash utilization despite the absence of revenue. Capital expenditures decreased to approximately $170K from $396K in the prior year, reflecting a strategic focus on operational expenses rather than fixed asset acquisition during this development stage. Free cash flow stood at -$6.7M for the year. The decrease in total liabilities was primarily attributable to the reduction of operating lease obligations and related-party debt, while the decrease in operating lease right-of-use assets resulted from the ongoing usage and payments of office space.
Management provided explicit disclosure regarding the company's liquidity position. Based on its working capital position as of December 31, 2025, the company believes there remains substantial doubt about its ability to continue as a going concern due to anticipated funding shortfalls and its pre-revenue status. This admission highlights the critical need for additional capital to bridge the gap between current operations and commercial viability. The company is continuing to monitor these matters and has indicated it will adjust its current business and financing plans as more information and guidance become available.
Amid the financial challenges, management provided detailed disclosure on its NCT (N-trans-Caffeoyltyramine) program, which represents the company's lead commercialization candidate. NCT is being positioned as a nutraceutical ingredient targeting metabolic disorders, with a parallel pharmaceutical pathway under evaluation. The company has achieved pilot-scale production and completed tech transfer to an external pilot plant operator. The commercialization strategy involves NCTX, a subsidiary, leveraging a capital-light model using contract manufacturers. This focus on nutraceuticals-with-pharmaceutical-potential reflects management's strategy to achieve faster time-to-market while building a foundation for potential pharmaceutical development.
Management has been explicit in its outlook: "We anticipate that our losses will continue to increase from current levels during our continuing development stage." The company's ability to bridge from its current pre-revenue state to commercial viability depends on successful execution of its NCT program, securing additional funding, and establishing the partnerships necessary for go-to-market capabilities. Investors should monitor the company's cash position closely, as well as progress on the NCT commercialization timeline and any announcements regarding partnerships or licensing arrangements that could provide near-term validation of the platform technology.