EXOZYMES INC.

eXoZymes operates in the biomanufacturing industry, focusing on developing sustainable solutions for chemical production by harnessing natural mechanisms. The company aims to address the inefficiencies of traditional natural extraction and the environmental damage of petrochemical production, as well as the scaling challenges faced by synthetic biology (SynBio). eXoZymes believes its technology represents a paradigm shift in chemical production, enabling the designable, engineerable, and scalable production of valuable chemicals. The company's core technology involves AI-designed and highly engineered enzymes, termed "exozymes," which facilitate "cell-free" biosolutions, avoiding the complexities and limitations associated with using living cells for chemical production.

eXoZymes positions itself as a leader in multi-step cell-free biocatalysis, differentiating its technology from competitors who primarily use simpler one-to-two step pathways. The company's competitive advantages are stated to include its founders' reputation and history, past successes, willingness to strategically partner, the experience of its management and staff, and its ability to develop diverse chemical manufacturing applications through its unique technological approach. Specifically, its intellectual property on recycling essential cofactors is highlighted as a competitive advantage over traditional synthetic biochemical companies. The company does not directly compete with ethanol producers in the biofuels sector, as its primary target, isobutanol, is considered a superior biofuel due to higher energy density.

The core business model of eXoZymes, a pre-revenue, development-stage company, is centered on building a robust technology platform to develop assets that can be reapplied across different markets. The company generates revenue through commercializing its biomanufacturing solutions via spin-outs, joint ventures, and licensing deals. Short-term revenue streams may include access to the eXoZymes platform, R&D fees, enzyme/exozyme sales, and short-term milestone payments, while long-term revenue is expected from licensing royalties, revenue sharing, and asset sales/exits. The primary customer segments are initially focused on the pharmaceutical and nutraceutical spaces, where the core technology is well-suited for producing high-value compounds.

The company's product and service line breakdown includes the development of N-trans-Caffeoyltyramine ("NCT") and isobutanol. NCT is a naturally occurring small molecule being developed for both nutraceutical and pharmaceutical pathways. Preclinical mouse model studies have shown NCT promotes significant metabolic improvements, including 30–40% body-weight reduction in animal models, a surge in mitochondrial biomarkers, and reductions in liver fat accumulation, without changes in caloric intake. The proprietary cell-free biomanufacturing platform for NCT has demonstrated >99% reaction yield at pilot scale, 6× faster production cycles than conventional methods, and predictable, single-product precision without undesired by-products, delivering >99% food/pharma-grade purity. This platform is being transferred to NCTX, a wholly owned subsidiary, for commercialization. The isobutanol program, supported by non-dilutive grants from the Department of Energy, focuses on producing isobutanol for Sustainable Aviation Fuel (SAF) and other sustainable biofuels and industrial chemical applications.

For the fiscal year ended December 31, 2025, eXoZymes reported no total operating income ¹. Total operating costs were $9,716,471 ², leading to a net operating loss of $(9,716,471) ³. After accounting for other income and an income tax benefit of $105,205 ⁴, the net loss for the year was $(9,158,734) ⁵. Diluted EPS was $(1.09) ⁶. The company's cash and cash equivalents as of December 31, 2025, stood at $3,039,343 ⁷. Total liabilities were $2,574,268 ⁸, and total stockholders' equity was $3,397,249 ⁹. The company had working capital of $2,372,687 ¹⁰ as of December 31, 2025.

Comparing fiscal year 2025 to 2024, total operating costs increased by $3,784,366 ¹¹, or 63.8% ¹². General and administrative costs rose from $4,063,339 ¹³ in 2024 to $6,009,480 ¹⁴ in 2025, an increase of 47.9% ¹⁵. Research and development costs increased by $1,838,225 ¹⁶, or 98.4% ¹⁷, from $1,868,766 ¹⁸ in 2024 to $3,706,991 ¹⁹ in 2025. Net loss increased by $3,297,399 ²⁰, or 56.3% ²¹, from $(5,861,335) ²² in 2024 to $(9,158,734) ²³ in 2025. Cash and cash equivalents decreased by $6,679,967 ²⁴, or 68.7% ²⁵, from $9,719,310 ²⁶ in 2024 to $3,039,343 ²⁷ in 2025.

Significant operational developments during the period include the rebranding of Invizyne Technologies, Inc. to eXoZymes, Inc. in February 2025 to clarify its core "cell-free" technology. The company established NCTx LLC on May 5, 2025, as a wholly owned subsidiary focused on the development and production of N-trans-caffeoyltyramine. Key accomplishments for NCT include achieving pilot-scale production in less than one year, successful technology transfer to an external pilot plant operator, validation of high-purity material (>99%), and ongoing scale-up planning. eXoZymes also received a federal subaward from Georgia Institute of Technology on July 1, 2025, for a $3 million ²⁸ share of a $9.2 million ²⁹ grant from the U.S. National Science Foundation (NSF) CFIRE program, aimed at transforming the scalability and accessibility of cell-free systems.

The company's commercialization strategy for the 2026–2027 period is focused on low-volume, high-value compounds, specifically natural products or their derivatives, for use as active ingredients in nutraceuticals with potential for active pharmaceutical ingredients (API). This staged approach aims to accelerate time to market through nutraceutical regulatory pathways, generate early revenue streams and market adoption data, validate biological activity and consumer demand, and establish a foundation for future pharmaceutical indications. After this initial focus period, eXoZymes plans to reevaluate and potentially expand its focus areas, including transitioning select compounds into formal pharmaceutical development programs or broadening the product portfolio into wider therapeutic applications.

A major growth area for eXoZymes is the development of N-trans-Caffeoyltyramine (NCT) for both nutraceutical and pharmaceutical applications. The nutraceutical pathway offers faster time to market with less cost and complexity, and the work done for nutraceuticals is expected to be reusable as a foundation for the pharmaceutical business case. The company's proprietary cell-free biomanufacturing platform enables scalable production of high-purity NCT, overcoming challenges of conventional sourcing and traditional synthetic chemistry. Another growth vector is the isobutanol program, which is supported by non-dilutive resources from the US Department of Energy. This program aims to build an exozyme biosolution to produce isobutanol for Sustainable Aviation Fuel (SAF) and other sustainable biofuels and industrial chemical applications, with eXoZymes retaining almost all of the upside in terms of intellectual property, new technology, and business opportunities.

The company anticipates that partnerships will be essential for its commercialization strategy, especially in markets where eXoZymes can provide a competitive advantage through its biomanufacturing biosolutions and partners have established commercial roadmaps. These partnerships may take the form of spin-outs, joint ventures, or licensing agreements. Spin-outs involve establishing fully owned subsidiaries for specific market applications, which may later attract external partners or investors. Joint ventures involve collaboration with partners who bring financing, expertise, or market access, forming new subsidiaries for specific market opportunities. Licensing agreements are pursued with partners in mature markets looking to optimize or replace existing products, involving R&D fees and royalty percentages of future revenues.

eXoZymes expects to expend significant cash resources on hiring personnel, continued scientific and potential product research and development, potential product scaling, intellectual property development and prosecution, marketing and promotion, capital expenditures, working capital, and general and administrative expenses. The company plans to expand both R&D and manufacturing scaling efforts, which will necessitate new hires in sales, pioneering processes, innovations, and ramping up production scales. The company's forward-looking strategy anticipates upscaling in terms of both personnel and manufacturing capabilities over the coming years, spanning operational segments including business development, research and development (R&D), fermentation/enzyme production, and pilot-scale chemical production.

eXoZymes faces several material risks, including its limited operating history as a pre-revenue, development-stage company, which makes future success and viability difficult to predict. There is no assurance that the company will generate revenue or become profitable, and it expects to incur operating losses and negative cash flow for the foreseeable future. The business will require additional capital to implement its long-term plans, and there is no guarantee that future financing will be available on favorable terms, potentially leading to dilution for current stockholders or a reduction/cessation of operations. The company is highly dependent on its ability to retain current management and scientific staff, and to recruit additional specialized employees, with the inability to do so potentially harming business implementation. The novel and complex nature of its bio-synthesized compounds may lead to skepticism from the market and regulators, requiring additional validation and potentially causing delays and increased funding requirements. The synthetic biology market is rapidly expanding and changing, and failure to keep up with developments, anticipate market demands, or secure necessary intellectual property licenses could adversely affect the business. Specifically, the NCT program carries risks, including uncertainty about human activation replicating preclinical animal model results, unforeseen challenges during full CMO scale-up, regulatory uncertainties for nutraceutical pathways, and competition in the nutraceutical market. The company also lacks manufacturing and distribution capabilities, relying on partners, and the inability to secure or maintain successful collaborations could adversely impact the business. Furthermore, the company's reliance on a single laboratory facility for all operations poses an operational risk, as any disruption could severely impact or halt activities. The concentration of ownership among existing executive officers, directors, and significant stockholders, with MDB Capital Holdings, LLC beneficially owning 47.63% ³⁰ of common stock, may prevent new investors from influencing significant corporate decisions.

Management's message to shareholders emphasizes the company's position as a pre-revenue, development-stage biotechnology company with a differentiated and unique synthetic biology platform. They believe this platform will enable scalable, environmentally friendly, and sustainable production of chemical molecules, leveraging cell-free, multi-step enzyme-based systems. The overall tone suggests a strong belief in the foundational nature and potential of their "exozymes" technology to transform biomanufacturing. Management is highly focused on achieving its next value inflection point, where public markets will acknowledge and appreciate the built assets, facilitating additional capital and/or opportunities to sell or license developed applications. Key strategic priorities include focusing on low-volume, high-value compounds, particularly nutraceuticals with pharmaceutical potential, to accelerate time to market and generate early revenue. They also prioritize strategic partnerships (spin-outs, joint ventures, licensing) to share costs, risks, and revenue, recognizing that the company's young stage and foundational technology necessitate collaboration to fully realize the promise of exozyme biosolutions. Management also highlights the importance of government and private grants as additional sources of financial resources, while acknowledging that the business is not solely dependent on them.