EXOZYMES INC.
For the period ended Mar 31, 2025. Filed May 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 12, 2025
EXOZ$4.40+7.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001493152-24-044813
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0001641172-25-009636
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 44 previous paragraphs and 55 current paragraphs.
14 unchanged; 21 reworded; 20 added; 8 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
General and Administrative Costs.
Current report
Research and Development Costs.
Current report
For the three months ended March 31, 2025, research and development costs increased by $297,434 compared to the same period in 2024, primarily due to higher salary, bonus accruals, stock based compensation and laboratory expenses, as well as a reduction in grant funding. It is important to note that the decrease in grant funding was not attributable to any specific event.
Current report
Financial Condition:
Current report
The increase in liabilities were primarily driven by the increase in accounts payable.
Current report
The equity decrease was due to losses generated by operations.
Current report
In March 2025, the Company received an additional grant in the amount of $283,805 from the National Institute of Health (NIH) BioClick. The BioClick grant focuses on a cell free high-throughput platform for engineering of enzymatic group transfer reactions. The Company intends to pursue additional grants from time to time, which if granted to the Company will further improve its working capital position.
Current report
Operating Activities.
Current report
Investing Activities.
Current report
Financing Activities.
Current report
For the three months ended March 31, 2025, the Company paid down related party debt amounting to $43,254.
Current report
For the three months ended March 31, 2024, the Company has cash expenditures that related to the ongoing IPO activities and totaled $91,507.
Current report
Recent Accounting Pronouncements
Current report
ASU 2024-03
Current report
In November 2024, the FASB issued ASU No. 2024-03,Disaggregation of Income Statement Expenses (DISE) (ASU 2024-03), which requires disclosure of certain categories of expenses such as the purchase of inventory, employee compensation, depreciation, and intangible asset amortization that are components of existing expense captions presented on the face of the income statement. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. ASU 2024-03 should be applied prospectively; however, retrospective application is permitted. We are currently evaluating the impact of ASU 2024-03 on our disclosures.
Current report
ASU 2023-07
Current report
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires all public entities, including public entities with a single reportable segment, to provide in interim and annual periods one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the standard requires disclosures of significant segment expenses and other segment items as well as incremental qualitative disclosures. The Company adopted ASU 2023-07 effective December 31, 2024, on a retrospective basis. The adoption of 2023-07 did not change the way that the Company identifies its reportable segments and, as a result, did not have a material impact on the Company’s segment-related disclosures.
Current report
ASU 2023-09
Current report
In December 2023, the FASB issued ASU No. 2023-09,Improvements to Income Tax Disclosures (ASU 2023-09), which is intended to enhance the transparency of income tax matters within financial statements, providing stakeholders with a clearer understanding of an entity’s operations and the associated tax risks. ASU 2023-09 requires public business entities to disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a specific quantitative threshold. There is a further requirement that public business entities will need to disclose a tabular reconciliation, using both percentages and reporting currency amounts. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-09 will result in modifications to our income tax disclosures beginning in 2025.
Current report
eXoZymes receives grant reimbursements, which are offset against research and development expenses in the consolidated statements of operations. In addition to actual reimbursements, eXoZymes also receives indirect expense grants (which are not reimbursement-based) and fees (typically of minor significance). It is important to note that there may be instances where the grants received for indirect costs exceed the actual costs. For capitalized assets, grant reimbursements are recognized over the useful life of the assets. Any portion of the grant not yet recognized is recorded as deferred grant reimbursements and included as a liability in the consolidated balance sheet.
Removed paragraphs (8)
Previous report
Operating Income. For the nine-months and three-months periods ended September 30, 2024, there has been no operating income activity.
Previous report
Research and Development Costs. For the nine-month periods ended September 30, 2024, there was an increase of $1,171,368, respectively, in research and development costs due to an increase in salaries, lab expenses and a decrease in grant funding. It is important to note that the fluctuation in grant funding was due to completion of certain grants and is expected to fluctuate throughout the year.
Previous report
The increase in liabilities were a result of funds loaned by the parent company to be used to fund operations. The decrease in operating lease liability was due to normal lease liability payments during the period.
Previous report
The equity decrease was driven by the accumulated deficit generated through operational activities.
Previous report
Financing Activities. For the period ended September 30, 2024, financing activities consisted loans from a related party, MDB Capital Holdings, and deferred IPO expenses.
Previous report
For the period ended September 30, 2023, financing activities consisted of investments from the parent company in the form of a SAFE.
Previous report
See Note 2 in the unaudited condensed consolidated financial statements for the discussion on recently accounting pronouncements.
Previous report
Invizyne receives grant reimbursements, which are netted against research and development expenses in the unaudited condensed consolidated statement of operations. Grant reimbursements for capitalized assets are recognized over the useful life of the assets, with the unrecognized portion considered a deferred liability and are included in accounts payable and accrued expenses in the unaudited condensed consolidated balance sheet.
Reworded paragraphs (21)
Previous wording
Invizyne is a bio-technology, pre-revenue, development stage company, which as of the date of this report is an approximate 48% owned subsidiary of MDB Capital Holdings, LLC. Management believes that Invizyne’s 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. Invizyne believes its technology could significantly change biomanufacturing through leveraging cell-free, multi-step enzyme-based systems that will be able to transform natural or renewable resources into sought after chemicals. The objective with SimplePath,™ the Invizyne synthetic biology platform, as it is developed over time, for diverse range of select chemicals will enable the production of pharmaceuticals, fuels, materials, food additives, and novel compounds.
Current wording
eXoZymes is a biotechnology, pre-revenue, development stage company. Management believes that eXoZymes’s 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. eXoZymes believes its technology could significantly change biomanufacturing through leveraging cell-free, multi-step enzyme-based systems that will be able to transform natural or renewable resources into sought after chemicals. The objective with the eXoZymes synthetic biology platform, as it is developed over time, for diverse range of select chemicals will enable the production of pharmaceuticals, fuels, materials, food additives, and novel compounds.
Previous wording
The Company has determined its reporting units in accordance with ASC (Accounting Standards Codification) 280, Segment Reporting. The Company has one reportable segment for Invizyne as a whole. A single management team that reports to the Chief Executive Officer comprehensively manages the business. Accordingly, the Company does not have separately reportable segments.
Current wording
The Company has determined its reporting units in accordance with ASC (Accounting Standards Codification) 280, Segment Reporting. The Company has one reportable segment for eXoZymes as a whole. A single management team that reports to the Chief Executive Officer comprehensively manages the business. Accordingly, the Company does not have separately reportable segments.
Previous wording
Consolidated Results of Operations for the Three Months Ended September 30, 2024, and 2023 (unaudited)
Current wording
Consolidated Results of Operations for the Three Months Ended March 31, 2025 and 2024
Previous wording
General and Administrative Costs. During the three-months and nine-months periods ended September 30, 2024 and 2023, respectively, several factors contributed to changes in various expense categories:
Current wording
During three months ended March 31, 2025, and 2024, respectively, several factors contributed to changes in various expense categories:
Previous wording
Consolidated Balance Sheet as of September 30, 2024 and December 31, 2023 (unaudited)
Current wording
Consolidated Balance Sheet as of March 31, 2025 and December 31, 2024
Previous wording
Financial Condition: The increase in assets was due to changes in several asset classes. The decrease in grants receivable was driven by completion of certain grants. The increase in prepaid expenses was due to $284,602 of deferred IPO costs between the periods. The increase in property and equipment was due to the purchase of lab equipment. The decrease in operating lease right-of-use assets resulted from the usage and payments of office space during the period.
Current wording
The decrease in assets was due to changes in several asset classes, but primarily in cash and cash equivalents. The decrease in grants receivable was driven by completion of certain grants and timing of grant drawdowns. The decrease in prepaid expenses was due to ongoing amortization of prepaids to expenses. The decrease in property and equipment was due to the ongoing accumulated depreciation of fixed asset. The decrease in operating lease right-of-use assets resulted from the usage and payments of office space during the period.
Previous wording
Liquidity and Capital Resources – September 30, 2024 and 2023 (unaudited)
Current wording
Liquidity and Capital Resources – March 31, 2025 and 2024
Previous wording
On September 30, 2024, the Company had working capital of $(4,379,709), as compared to working capital of $(1,201,680) on December 31, 2023, reflecting a decrease in working capital of $3,178,029. This decrease in working capital was primarily the result of a reduction in grant reimbursements over the period and the increase in accounts due to affiliates, which were used to pay certain expenses of the Company and to cover general operating expenses. On September 30, 2024, the Company had cash of $233,935 available to fund its operation.
Current wording
On March 31, 2025, the Company had working capital of $7,974,538, as compared to working capital of $9,487,137 on December 31, 2024, reflecting an increase in working capital of $10,141,306. This decrease in working capital was the result of usage of cash and cash equivalents to fund operations. On March 31, 2025, the Company had cash of $8,511,477 available to fund its operations.
Previous wording
On November 11, 2024, the Company signed a firm commitment underwriting agreement for its IPO, in which it sold an aggregate of 1,875,000 shares of Common Stock, for gross proceeds of $15,000,000, and net proceeds of approximately $14,321,686. The proceeds will be used in the expansion of its production capabilities, staffing, R&D and other working capital requirements, and repayment of approximately $4,393,022 in intercompany loans from its parent company, MDB Capital Holdings, LLC.
Current wording
On November 11, 2024, the Company signed a firm commitment underwriting agreement for its IPO, in which it sold an aggregate of 1,987,666 shares of Common Stock, including 112,666 shares pursuant to the underwriter overallotment option, for gross proceeds $15,901,328, and net proceeds of approximately $15,206,543. The Company used of approximately $4,243,022 to repay loans from MDB Capital Holdings, LLC shortly after the closing of the IPO. The balance of the proceeds as of March 31, 2025, will continue to be used, throughout 2025, in the expansion of its production capabilities, staffing, R&D and other working capital requirements.
Previous wording
In October 2024, the Company received an additional cost share grant from the Department of Defense (DOD) BioMADE initiative to help fund next steps toward cell-free biomanufacturing of isobutanol in the amount of approximately $1,000,000 against our own required expenses of an equal amount. The Company intends to pursue additional grants which will further improve its working capital position.
Current wording
In October 2024, the Company received a cost share grant from the Department of Defense (DOD) BioMADE initiative to help fund next steps toward cell-free biomanufacturing of isobutanol in the amount of approximately $1,000,000 against our own required expenses of an equal amount.
Previous wording
Based on its working capital of approximately $9,941,977 after the IPO, and its program of seeking various grants, the Company believes it will not need to raise capital in the immediate future. If, however, it does require capital, it may sell its equity securities, seek institutional and bank funding, borrow from its affiliates, for which there are no arrangements or obligations in place at this time, and sell or license various of its intellectual property rights.
Current wording
Based on its working capital of approximately $7,974,538 as of March 31, 2025, and its program of seeking various grants, the Company believes it has sufficient funds, in the near term, for its currently planned operations. The Company will continue to allocate its available working capital toward advancing its research, development, and commercialization initiatives. If and when it requires capital, it may sell its equity securities, seek institutional and bank funding, and sell or license various of its intellectual property rights. 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.
Previous wording
***Operating Activities.***For the period ended September 30, 2024, operating activities utilized cash of $2,798,123, which was driven by an increased research and development activity, as well as increased general and administrative costs.
Current wording
For the three months ended March 31, 2025, operating activities utilized cash of $1,133,533, which was driven by an increased research and development activity, as well as increased general and administrative costs.
Previous wording
For the period ended September 30, 2023, operating activities utilized cash of $397,590, which was driven by a combination of increased research and development activity, as well as increased general and administrative costs.
Current wording
For the three months ended March 31, 2024, operating activities provided cash of $281,199. This was primarily driven by increased research and development activity, as well as higher general and administrative expenses, which resulted in a deficit for the period. However, this deficit was offset by cash received from related parties.
Previous wording
Investing Activities. For the period ended September 30, 2024, investing activities consisted of the purchase of laboratory equipment.
Current wording
For the three months ended March 31, 2025, and 2024, investing activities primarily consisted of the purchase of laboratory equipment.
Previous wording
The preparation of financial statements in conformity with general accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We have identified certain accounting policies as being critical because they require us to make difficult, subjective, or complex judgments about matters that are uncertain. We believe that the judgment, estimates, and assumptions used in the preparation of our unaudited condensed consolidated financial statements and unaudited condensed consolidated financial statements are appropriate given the factual circumstances at the time. However, actual results could differ, and the use of other assumptions or estimates could result in material differences in our results of operations or financial condition. Our critical accounting estimates are:
Current wording
The preparation of financial statements in conformity with general accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We have identified certain accounting policies as being critical because they require us to make difficult, subjective, or complex judgments about matters that are uncertain. We believe that the judgment, estimates, and assumptions used in the preparation of our condensed unaudited consolidated financial statements are appropriate given the factual circumstances at the time. However, actual results could differ, and the use of other assumptions or estimates could result in material differences in our results of operations or financial condition. Our critical accounting estimates are:
Previous wording
Grants that operate on a reimbursement basis are recognized on the accrual basis are revenues to extent of disbursements and commitments that are allowable for reimbursement of allowable expenses incurred as of September 30, 2024 and 2023 and expected to be received from funding sources in the subsequent year. Management considers such receivables at September 30, 2024 and 2023, to be fully collectable, due to the historical experience with the Federal Government of the United States of America. Accordingly, no allowance for grants receivable was recorded in the accompanying unaudited condensed consolidated financial statements.
Current wording
Grants that operate on a reimbursement basis are recognized on the accrual basis and are recorded as offsets to expenses, to the extent of disbursements and commitments for allowable expenses incurred as of March 31, 2025, that are expected to be reimbursed in the subsequent period. Management considers the grants receivable as of March 31, 2025, to be fully collectible, based on historical experience with the Federal Government of the United States of America. Accordingly, no allowance for credit losses on grants receivable was recorded in the accompanying condensed unaudited consolidated financial statements.
Previous wording
Research grants received from organizations are subject to the contract agreement as to how Invizyne conducts its research activities, and Invizyne is required to comply with the agreement terms relating to those grants. Amounts received under research grants are nonrefundable, regardless of the success of the underlying research project, to the extent that such amounts are expended in accordance with the approved grant project. Invizyne is permitted to draw down (a process of submitting expenses for reimbursement) the research grants after incurring the related expenses. Amounts received under research grants are offset against the related research and development costs in the Company’s unaudited condensed consolidated statement of operations.
Current wording
Research grants received from organizations are subject to the contract agreement as to how eXoZymes conducts its research activities, and eXoZymes is required to comply with the agreement terms relating to those grants. Amounts received under research grants are nonrefundable, regardless of the success of the underlying research project, to the extent that such amounts are expended in accordance with the approved grant project. eXoZymes is permitted to draw down (a process of submitting expenses for reimbursement) the research grants after incurring the related expenses. Amounts received under research grants are offset against the related research and development costs in the Company’s consolidated statement of operations.
Previous wording
On November 11, 2024, the Company signed a firm commitment underwriting agreement for its initial public offering (IPO) with a closing date of November 13, 2024, which consisted of the sale of an aggregate of _1,875,000 shares of Common Stock. The public offering price was $8.00 per share, for gross proceeds of $15,000,000. The underwriter may exercise its overallotment option for up to an additional 281,250 shares until December 26, 2024. The net proceeds are estimated to be $14,321,686 as of the date of this report. The proceeds will be used for the development of Invizyne, expansion of production capabilities, increased staff and related expenses, R&D expenses, repayment of a related party loan and other general corporate and working capital requirements.
Current wording
On November 11, 2024, the Company signed a firm commitment underwriting agreement for its initial public offering (IPO) with a closing date of November 11, 2024, which consisted of the sale of an aggregate of 1,875,000 shares of Common Stock. The public offering price was $8.00 per share, for gross proceeds of $15,000,000. The underwriter was granted its overallotment option for up to an additional 281,250 shares until December 26, 2024. The net proceeds for the initial public offering with the overallotment were $15,206,543 as of the date of this report. The proceeds will be used for the development of eXoZymes, expansion of production capabilities, increased staff and related expenses, R&D expenses, repayment of a related party loan and other general corporate and working capital requirements.
Previous wording
Supply Chain Issues. The Company does not currently expect that supply chain issues will have a significant impact on its business activities.
Current wording
Supply Chain Issues. The Company continues to monitor changes in tariffs and indirect trade restraints. The Company does not currently expect that supply chain issues will have a significant impact on its business activities.
Previous wording
Potential Recession. There are various indications that the United States economy may be entering a recessionary period. Although unclear at this time an economic recession would likely impact the general business environment and the capital markets, which could, in turn, if there is a recession, such an event could affect the Company.
Current wording
Potential Recession. There are various indications that the United States economy may be entering a recessionary period. Also, there is possible economic instability due to the possibility of tariffs and other economic changes due to government policy of the United States and other countries. Although unclear at this time, an economic recession would likely impact the general business environment and the capital markets, which could, in turn, affect the Company.
Previous wording
***Technology.***The Company endeavors to create and bring new technologies to the market may never come to fruition or might not reach a level of development sufficient for commercial viability. Even if they do achieve a commercial level of development, the acceptance of these technologies within the marketplace is uncertain. There’s a possibility that the technologies they develop may not gain widespread or timely acceptance. Moreover, technologies from our Company that undergo regulatory scrutiny, testing, and approval may ultimately fail to receive the necessary approvals from relevant regulatory bodies.
Current wording
***Technology.***The Company’s endeavors to create and bring new technologies to the market may never come to fruition or might not reach a level of development sufficient for commercial viability. Even if they do achieve a commercial level of development, the acceptance of these technologies within the marketplace is uncertain. There’s a possibility that the technologies they develop may not gain widespread or timely acceptance. Moreover, technologies from our Company that undergo regulatory scrutiny, testing, and approval may ultimately fail to receive the necessary approvals from relevant regulatory bodies.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Consolidated Results of Operations for the Nine Months Ended September 30, 2024, and 2023 (unaudited)