IZTC
Invizyne Technologies INC
NASDAQ
10-Q: eXoZymes Inc. Reports Q1 2025 Results: Net Loss Widens Amid Increased R&D and Administrative Costs
Sentiment:
Quarterly Report
12 May 2025 2:34 PM
eXoZymes Inc. reports a net loss of $1.86 million for Q1 2025, compared to a $1.01 million loss in Q1 2024, driven by increased operating costs.
Worse than expected
The company's net loss increased significantly compared to the same period last year.
Operating costs rose sharply, driven by increased compensation, professional fees, and other administrative expenses.
Cash reserves are declining, raising concerns about the company's ability to fund future operations.
Capital raise
The company's auditors have raised substantial doubt about its ability to continue as a going concern due to funding shortfalls.
The company may sell its equity securities, seek institutional and bank funding, and sell or license various of its intellectual property rights if and when it requires capital.
The company does not have any current arrangements for additional funding, and there is no assurance that it will be able to obtain funding, when needed, on terms that are commercially reasonable.
Summary
- eXoZymes Inc. reported a net loss of $1,856,421 for the three months ended March 31, 2025, compared to a net loss of $1,008,458 for the same period in 2024.
- The company's total operating income remained at $0 for both periods.
- Operating costs increased significantly, with general and administrative costs rising from $730,876 in Q1 2024 to $1,375,712 in Q1 2025.
- Research and development costs, net of grants, also increased from $277,582 to $575,016.
- The company's cash and cash equivalents decreased from $9,719,310 at the end of 2024 to $8,511,477 as of March 31, 2025.
- The company had 8,367,810 common shares outstanding as of March 31, 2025, and December 31, 2024.
- The company believes it has sufficient working capital for the near term, but there remains substantial doubt about its ability to continue as a going concern due to anticipated funding shortfalls and the company's pre-revenue status.
Sentiment
Score: 3
Explanation: The document presents a negative outlook due to increased losses, rising operating costs, declining cash reserves, and concerns about the company's ability to continue as a going concern. While there are some positive aspects, such as grant funding, the overall financial situation is concerning.
Positives
- The company received a $283,805 grant from the National Institute of Health (NIH) BioClick in March 2025.
- Interest income increased to $94,307 for the three months ended March 31, 2025, compared to $0 for the same period in 2024.
- The company is actively pursuing additional grants to improve its working capital position.
Negatives
- The company's net loss increased significantly, indicating a worsening financial situation.
- Operating costs are rising sharply, driven by increased compensation, professional fees, and other administrative expenses.
- The company's cash reserves are declining, raising concerns about its ability to fund future operations.
- Auditors have expressed substantial doubt about the company's ability to continue as a going concern.
Risks
- The company's pre-revenue status and anticipated funding shortfalls pose a significant risk to its long-term viability.
- The company's ability to secure additional financial support is uncertain.
- Economic recession could impact the general business environment and the capital markets, which could affect the company.
- Changes to United States tariff and import/export regulations may have an adverse effect on the company's business, financial condition and results of operations.
- Government action on tariffs and research grants and other funding may impede the company's ability to conduct its research and to raise capital by and for its partner companies and other clients.
Future Outlook
The company intends to continue allocating its available working capital toward advancing its research, development, and commercialization initiatives and may seek additional funding through equity sales, institutional and bank funding, or licensing of intellectual property rights.
Management Comments
- Management believes that eXoZymess technology is a differentiated and unique synthetic biology platform.
- Management believes the platform will enable scalable production of chemical molecules found in nature in a process that is alternative to and more environmentally friendly and sustainable than the typical methods used today, such as chemical synthesis, natural extraction, and synthetic biology.
Industry Context
eXoZymes operates in the biotechnology industry, specifically focusing on synthetic biology and biomanufacturing. Competitors include companies developing similar cell-free systems for producing chemicals, pharmaceuticals, and other products. The company's success depends on its ability to develop and commercialize its technology effectively and efficiently.
Comparison to Industry Standards
- It is difficult to compare eXoZymes directly to industry standards due to its pre-revenue status and unique technology platform.
- Comparable companies in the synthetic biology space, such as Amyris and Ginkgo Bioworks, have faced challenges in achieving profitability despite significant investments and partnerships.
- eXoZymes' reliance on grant funding and its need for additional capital raise concerns about its long-term financial sustainability.
Stakeholder Impact
- Shareholders may be concerned about the company's increasing losses and declining cash reserves.
- Employees may be affected by potential funding shortfalls and the company's ability to continue as a going concern.
- Customers and suppliers may be impacted by the company's ability to develop and commercialize its technology.
Next Steps
- The company will continue to allocate its available working capital toward advancing its research, development, and commercialization initiatives.
- The company intends to pursue additional grants from time to time, which if granted to the Company will further improve its working capital position.
Legal Proceedings
- As of March 31, 2025 and 2024, the Company was not subject to any pending or threatened legal claims or actions.
Related Party Transactions
- As of March 31, 2025, the Company had an outstanding payable of $135,712 to MDB Capital Holdings, LLC.
- The payable is non interest bearing and will be paid in 2025.
Key Dates
- 2014: eXoZymes (CA) Inc. was formed in California.
- 2019: eXoZymes Inc. was formed in Nevada.
- 2019-04-19: eXoZymes entered into a license agreement with The Regents of the University of California.
- 2021-07-19: eXoZymes granted 81,118 restricted stock units (RSUs) at a value of $2.44 per share.
- 2022-04-01: Pursuant to an equity subscription agreement the Company sold a total of 1,642,345 shares of eXoZymess Common Stock for $5,000,000 at $3.04 per share.
- 2022-06-01: The Company signed a joint venture with Neuractas Therapeutics.
- 2023-04-03: The Company executed a lease for new office space next to the existing space at eXoZymes in the Los Angeles, California metropolitan area.
- 2023-05-01: The board and shareholders approved an increase of 1,558,175 shares under the 2020 Equity Incentive Plan.
- 2023-10-01: The first grant was awarded by the National Institute of Health, the Department of Energy and Department of Defense.
- 2023-10-03: Our board of directors approved a two-for-one (2:1) stock split of our issued and outstanding Common Stock.
- 2023-10-30: The Company executed an addendum to the current lease for additional office space in Monrovia, California.
- 2024-02-01: Stock options to purchase 155,818 shares of Common Stock were granted at an exercise price of $3.32 per share.
- 2024-04-01: Stock options to purchase 125,975 shares of Common Stock were granted at an exercise price of $8.00 per share.
- 2024-05-19: 2,347 stock options were exercised using a cashless exercise option.
- 2024-06-01: Stock options to purchase 444,076 shares of Common Stock were granted at an exercise price of $8.00 per share.
- 2024-10: The Company received a cost share grant from the Department of Defense (DOD) BioMADE initiative.
- 2024-11-11: The Company signed a firm commitment underwriting agreement for its IPO.
- 2024-12-20: Two individuals exercised their options agreements.
- 2025-03: The Company received an additional grant in the amount of $283,805 from the National Institute of Health (NIH) BioClick.
- 2025-03-31: End of the quarterly period.
- 2025-05-05: The Company established a wholly owned subsidiary NCTx LLC.
- 2025-05-12: Date on which these financial statements were issued.
- 2025-11-11: These RSUs fully vest upon the expiration of any lockup period.
Keywords
eXoZymes, financial results, net loss, operating costs, research and development, going concern, biotechnology, synthetic biology, grants, liquidity, capital resources
IZTC
Invizyne Technologies INC
NASDAQ
Sector: TBD
Filings with Classifications
Better than expected
2 July 2025 5:49 PM
Insider Trading Report
- The Chief Executive Officer's purchase of company stock indicates a vote of confidence in the company's prospects and valuation.
Better than expected
17 June 2025 5:22 PM
Insider Transaction Report
- The acquisition of additional shares by a key executive like the Vice President of Research is typically viewed as a positive signal, indicating management's confidence in the company's future performance and valuation.
Better than expected
17 June 2025 5:19 PM
Insider Transaction Report
- The acquisition of shares by a Vice President of Development is generally viewed as a positive signal, indicating management's confidence in the company's future prospects and aligning their interests with shareholders.
Capital raise
12 May 2025 2:34 PM
Quarterly Report
- The company's auditors have raised substantial doubt about its ability to continue as a going concern due to funding shortfalls.
- The company may sell its equity securities, seek institutional and bank funding, and sell or license various of its intellectual property rights if and when it requires capital.
- The company does not have any current arrangements for additional funding, and there is no assurance that it will be able to obtain funding, when needed, on terms that are commercially reasonable.
Worse than expected
12 May 2025 2:34 PM
Quarterly Report
- The company's net loss increased significantly compared to the same period last year.
- Operating costs rose sharply, driven by increased compensation, professional fees, and other administrative expenses.
- Cash reserves are declining, raising concerns about the company's ability to fund future operations.
Capital raise
31 March 2025 4:17 PM
Annual Results
- The company may need additional capital to support its growth over time.
- The company may explore future financing arrangements, including private and public offerings of securities, borrowings, spinouts, joint ventures, licensing, asset sales, and merger transactions.
- The company may also seek government research grants.
Worse than expected
31 March 2025 4:17 PM
Annual Results
- The company incurred a net loss of \$5,861,335 in 2024, which is worse than the net loss of \$2,038,389 in 2023.
- The company has a going concern footnote in its financial statements, indicating substantial doubt about its ability to continue as a going concern.
Capital raise
18 November 2024 4:45 PM
Initial Public Offering Announcement
- The company completed an initial public offering of 1,875,000 shares at $8.00 per share, raising $15 million in gross proceeds.
- A concurrent private placement of 93,750 warrants was completed at $0.125 per warrant, with an exercise price of $8.00 per share, potentially raising an additional $750,000 if fully exercised.
- The underwriter has a 45-day option to purchase an additional 281,250 shares, which could result in further capital raising if exercised.
Worse than expected
12 November 2024 4:55 PM
Quarterly Report
- The company's net loss of $4.03 million for the nine months ended September 30, 2024, is significantly worse than the $939,825 loss for the same period in 2023.
- The company's operating costs have increased substantially, leading to a larger net loss.
- The company's working capital deficit of $4.38 million as of September 30, 2024, is a significant deterioration compared to the $1.2 million deficit at the end of 2023.
Capital raise
12 November 2024 4:55 PM
Quarterly Report
- The company completed its IPO on November 13, 2024, selling 1,875,000 shares of Common Stock for gross proceeds of $15,000,000 and net proceeds of approximately $14,321,686.
- The company issued 93,750 warrants to the underwriter and its assignees to purchase up to 93,750 shares of Common Stock.
- The company sold 93,750 warrants to accredited investors in a concurrent private offering for gross proceeds of approximately $11,719, with potential additional proceeds of up to $750,000 if the warrants are fully exercised.
- The company issued 125,001 shares of Common Stock on the conversion of SAFEs on November 12, 2024.
Capital raise
21 October 2024 11:23 AM
Legal Agreement
- The exercise of the warrant would result in a capital raise for Invizyne Technologies Inc.
Capital raise
4 October 2024 5:28 PM
S-1/A Registration Statement
- Invizyne Technologies Inc. is offering 1,875,000 shares of common stock at $8.00 per share.
- The company has granted the underwriter a 45-day option to purchase up to 281,250 additional shares to cover over-allotments.
Worse than expected
4 October 2024 5:28 PM
S-1/A Registration Statement
- The company has incurred a net loss of $2,368,988 and $419,229 during the six months ended June 30, 2024 and 2023, respectively, and had cash flows from operations of $383,401 and $(363,610) for the six months ended June 30, 2024 and 2023, respectively.
- Management believes that the Companys remaining cash on hand for one year from the date the financials are issued will not be sufficient to meet its liabilities and obligations as and when they fall due through the next year without additional financial support which raises substantial doubt about the Companys ability to continue as a going concern.
Capital raise
19 September 2024 2:03 PM
S-1/A (Registration Statement Amendment)
- Invizyne Technologies Inc. is offering 3,750,000 shares of common stock at $4.00 per share in its IPO.
- Each share includes a non-transferable right to receive up to one additional share after two years if certain conditions are met.
- The estimated net proceeds of $13.3 million will be used for expansion and working capital.
Worse than expected
19 September 2024 2:03 PM
S-1/A (Registration Statement Amendment)
- The company has incurred a net loss of $2,368,988 and $419,229 during the six months ended June 30, 2024 and 2023, respectively, and had cash flows from operations of $383,401 and $(363,610) for the six months ended June 30, 2024 and 2023, respectively.
- Management believes that the Companys remaining cash on hand for one year from the date the financials are issued will not be sufficient to meet its liabilities and obligations as and when they fall due through the next year without additional financial support which raises substantial doubt about the Companys ability to continue as a going concern.
Worse than expected
6 September 2024 4:25 PM
S-1/A Amendment
- The company has a limited operating history and has incurred losses to date.
- The company anticipates needing additional funding in the future to continue developing its business plan.
- The independent accountants to the Company have issued their report with a going concern statement.
Capital raise
6 September 2024 4:25 PM
S-1/A Amendment
- The company is planning an initial public offering (IPO) of 3,750,000 shares of common stock at a price of $4.00 per share, aiming to raise $15 million.
- The offering includes a non-transferable contractual right for investors to receive up to one additional share of common stock for each share purchased, contingent on certain conditions.
- MDB Capital Holdings, LLC, the majority holder of Invizyne's common stock, is offering 8,027,538 shares in the IPO.
- The company plans to use the net proceeds from the offering to expand production capabilities, increase staff, expand business development, sales and marketing efforts, expand research and development, and add to working capital.
- The underwriter has a 45-day option to purchase up to 562,500 additional shares to cover over-allotments.
Capital raise
1 August 2024 6:11 AM
S-1/A Filing
- The company is offering 4,300,000 shares of common stock in its initial public offering.
- The proposed price is $4.00 per share.
- The company estimates net proceeds of approximately $15.3 million, or $17.7 million if the underwriter exercises its over-allotment option in full.
- The company intends to use the net proceeds from this offering (i) to expand the production capabilities of the Company, including capital expenditures, (ii) to increase our staff, (iii) to expand our business development, sales and marketing efforts, (iv) to expand our research and development and technology platform and (v) to add to our working capital.
Capital raise
22 May 2024 4:40 PM
S-1/A Amendment
- Invizyne Technologies Inc. is planning an initial public offering of 4,300,000 shares of its common stock at a price of $4.00 per share.
- The company intends to list its common stock on The Nasdaq Capital Market under the symbol IZTC.
- MDB Capital Holdings, LLC, the majority holder of Invizyne's common stock, is offering 8,027,538 shares of common stock as a selling security holder.
- Net proceeds from the offering are estimated to be approximately $15.3 million, which will be used to expand production capabilities, increase staff, expand business development, sales and marketing efforts, expand research and development, and add to working capital.
Capital raise
17 April 2024 4:07 PM
S-1/A Filing
- The company is offering 4,300,000 shares of common stock at $4.00 per share in its initial public offering.
- The company estimates that the net proceeds from this offering will be approximately $15,473,747, or $19,258,000 if the underwriter exercises its option to purchase additional shares in full.
- MDB Capital Holdings, LLC, the majority holder of the company's Common Stock, is offering 8,027,538 shares of Common Stock.
Worse than expected
17 April 2024 4:07 PM
S-1/A Filing
- The company is pre-revenue and has incurred significant losses.
- The company's auditor has issued a going concern statement.
Capital raise
14 February 2024 10:46 AM
S-1/A
- Invizyne Technologies Inc. is planning an initial public offering (IPO).
- The company intends to offer 4,300,000 shares of its common stock at a price of $4.00 per share, aiming to raise $17,200,000 before expenses.
- The company plans to use the proceeds from the IPO to expand production capabilities, increase staff, expand business development, sales, and marketing, expand the R&D and technology platform, and for working capital and other general purposes.
Worse than expected
14 February 2024 10:46 AM
S-1/A
- The company has a limited operating history and has not generated any revenues to date.
- The independent accountants to the Company have issued their report with a going concern statement.
Worse than expected
9 February 2024 4:58 PM
S-1 Filing
- The company has a limited operating history and has not generated any revenues to date.
- The company anticipates needing additional funding in the future to fully develop its business plan, with the funds from this offering expected to fund operations for 12 to 24 months.
- The company's independent accountants have issued their report with a going concern statement.
Capital raise
9 February 2024 4:58 PM
S-1 Filing
- Invizyne Technologies is offering 4,300,000 shares of common stock in its initial public offering.
- The public offering price of the Common Stock was determined through negotiation between the underwriter and us, and the offering price used throughout this prospectus may not be indicative of the price of a share of Common Stock in the market after the initial public offering.
- The underwriter will receive compensation in addition to the discounts and commissions.
- The registration statement, of which this prospectus is a part, also registers for sale warrants to purchase up to 430,000 [10%] shares of Common Stock to be issued to the underwriters, at an exercise price of 125% of the public offering price.
- We have granted a 45-day option to the underwriter to purchase up to 645,000 [15%] additional shares of Common Stock solely to cover over-allotments, if any.
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