UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-42204

EXOZYMES INC.

(Exact name of registrant as specified in its charter)

Nevada		83-4550057
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

750 Royal Oaks Drive, Suite 106 Monrovia, CA 91016		91016
(Address of principal executive offices)		(Zip code)

(626) 415-1488

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

None

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $.000001		EXOZ		Nasdaq Capital Markets

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days. YES ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES ☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☒
		Emerging Growth Company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

As of November 13, 2025, the number of outstanding shares of Common Stock was 8,387,250.

TABLE OF CONTENTS

		Page Number
PART I	FINANCIAL INFORMATION	3

Item 1 - Condensed Unaudited Consolidated Financial Statements		3

Condensed Unaudited Consolidated Balance Sheets – September 30, 2025, and December 31, 2024		3

Condensed Unaudited Consolidated Statements of Operations – Three months and Nine months ended September 30, 2025, and 2024		4

Condensed Unaudited Consolidated Statements of Changes in Equity (Deficit) – Three months and Nine months ended September 30, 2025, and 2024		5

Condensed Unaudited Consolidated Statements of Cash Flows – Nine months ended September 30, 2025, and 2024		6

Notes to Condensed Unaudited Consolidated Financial Statements		7

Item 2	Management’s Discussion and Analysis of Financial Conditions and Results of Operations	18

Item 3	Quantitative and Qualitative Disclosures About Market Risk	23

Item 4	Controls and Procedures	23

PART II	OTHER INFORMATION	24

Item 1	Legal Proceedings	24

Item 1A	Risk Factors	24

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	24

Item 3	Defaults upon Senior Securities	24

Item 4	Mine Safety Disclosures	24

Item 5	Other Information	24

Item 6	Exhibits	24

In this Quarterly Report, unless otherwise indicated, the “Company”, “eXoZymes,” “we”, “us” or “our” refer to eXoZymes Inc. and, where appropriate, together with its wholly owned subsidiary.

PART I – FINANCIAL INFORMATION

CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS

	September 30, 2025 (Unaudited)			December 31, 2024
ASSETS
Cash and cash equivalents	$	5,098,687		$	9,719,310
Grants receivable		302,643			737,282
Prepaid expenses and other current assets		204,720			363,790
Total current assets		5,606,050			10,820,382
Property and equipment, net		763,012			882,445
Operating lease right-of-use asset, net		1,124,925			1,331,577
Finance lease right-of-use asset, net		119,236			-
Income tax receivable		105,826			-
Total assets	$	7,719,049		$	13,034,404

LIABILITIES AND EQUITY
Accounts payable	$	904,353		$	924,252
Due to affiliates		17,085			178,966
Operating lease liabilities – current		274,301			230,027
Finance lease liabilities – current		42,623			-
Total current liabilities		1,238,362			1,333,245
Deferred grant reimbursement		103,065			123,579
Operating lease liabilities - long term		926,587			1,156,805
Finance lease liabilities - long term		76,613			-
Total liabilities	$	2,344,627		$	2,613,629
Stockholders’ Equity:
Preferred stock, $0.000001 par value, 5,000,000 shares authorized; no shares issued and outstanding on September 30, 2025, and December 31, 2024, respectively.		-			-
Common shares, 100,000,000 authorized shares at $0.000001; 8,387,250 and 8,367,810 shares issued and outstanding as of September 30, 2025, and December 31, 2024, respectively		8			8
Additional Paid-in-capital		23,824,070			22,366,725
Accumulated (deficit)		(18,449,656	)		(11,945,958	)
Total stockholders’ equity		5,374,422			10,420,775
Total liabilities and equity	$	7,719,049		$	13,034,404

See accompanying notes to the condensed unaudited consolidated financial statements.

CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

	2025			2024			2025			2024
	Three Months ended September 30,						Nine Months ended September 30,
	2025			2024			2025			2024
Total operating income	$	-		$	-		$	-		$	-

Operating costs:
General and administrative costs:
Compensation		845,174			546,095			2,527,936			1,667,748
Professional fees		237,916			269,543			1,139,083			816,009
Information technology		8,175			15,661			75,327			29,267
General and administrative-other		214,181			56,940			683,870			197,302
Total general and administrative costs		1,305,446			888,239			4,426,216			2,710,326
Research and development costs, net of grants		1,216,762			723,487			2,594,765			1,238,463
Total operating costs		2,522,208			1,611,726			7,020,981			3,948,789
Net operating loss		(2,522,208	)		(1,611,726	)		(7,020,981	)		(3,948,789	)
Other income/(expense):
Interest income/ (expense)		59,185			(44,647	)		231,742			(74,429	)
Other income/(expense):		176,032			-			285,541			-
Loss before income taxes		(2,286,991	)		(1,656,373	)		(6,503,698	)		(4,023,218	)
Income taxes		-			-			-			2,143
Net loss	$	(2,286,991	)	$	(1,656,373	)	$	(6,503,698	)	$	(4,025,361	)

Net loss per common share – basic and diluted	$	(0.27	)	$	(0.27	)	$	(0.78	)	$	(0.64	)
Weighted average of common shares outstanding – basic and diluted		8,387,250			6,252,349			8,377,513			6,251,158

See accompanying notes to the condensed unaudited consolidated financial statements.

CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Three and Nine Months Ended September 30, 2025

	Shares		Amount		Capital		Deficit			Total
	Common Stock				Additional Paid-in		Accumulated
	Shares		Amount		Capital		Deficit			Total
Balance, December 31, 2024		8,367,810		8		22,366,725		(11,945,958	)		10,420,775
Stock options		-		-		317,277		-

SEC Form 10-Q filed by eXoZymes Inc.