# EDGAR Filing Document

**Accession Number:** 0001698530
**File Stem:** 0001698530-25-000056
**Filing Date:** 2025-6
**Character Count:** 274971
**Document Hash:** 111470a77bc995effc373f297ae19e99
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001698530-25-000056.hdr.sgml**: 20250627

**ACCESSION NUMBER**: 0001698530-25-000056

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 78

**CONFORMED PERIOD OF REPORT**: 20250331

**FILED AS OF DATE**: 20250627

**DATE AS OF CHANGE**: 20250627

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EXICURE, INC.
- **CENTRAL INDEX KEY:** 0001698530
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 815333008
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39011
- **FILM NUMBER:** 251087102

**BUSINESS ADDRESS:**
- **STREET 1:** 2430 N. HALSTED ST.
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60614
- **BUSINESS PHONE:** 847-673-1707

**MAIL ADDRESS:**
- **STREET 1:** 2430 N. HALSTED ST.
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60614

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Max-1 Acquisition Corp
- **DATE OF NAME CHANGE:** 20170221

?xml version='1.0' encoding='ASCII'? xcur-20250331

**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

    

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**______________________________________**

**FORM 10-Q**

**______________________________________**

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

**For the quarterly period ended March 31, 2025**

**or**

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

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Commission File Number: 001-39011**

**______________________________________**

**EXICURE, INC.**

**(Exact name of registrant as specified in its charter)**

**_____________________________________**

---

| | |
|:---|:---|
| **Delaware** | **81-5333008** |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(IRS Employer**<br>**Identification No.)** |

---

**400 Seaport Court, Suite 102**

**Redwood City, CA 94063**

**(Address of principal executive offices)**

**Registrant's telephone number, including area code (847) 673-1700**

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange on which registered** |
| **Common Stock, par value $0.0001 per share** | **XCUR** | **The Nasdaq Stock Market LLC** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 past 90 days.&nbsp;&nbsp;&nbsp;&nbsp; Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;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).&nbsp;&nbsp;&nbsp;&nbsp; Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;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," "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 by Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp; Yes ☐ No ☒

As of June 23, 2025, there were 6,317,793 shares of the registrant's common stock, par value $0.0001 per share ("Common Stock"), outstanding.

    

------

**EXICURE, INC.**

**QUARTERLY REPORT ON FORM 10-Q**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **<u>[PART I - FINANCIAL INFORMATION](#i28d7a96df527407a965df6fe789d1095_13)</u>** | <u>[5](#i28d7a96df527407a965df6fe789d1095_19)</u> |
| &nbsp;&nbsp;<u>[Item 1. Financial Statements](#i28d7a96df527407a965df6fe789d1095_16)</u> | <u>[5](#i28d7a96df527407a965df6fe789d1095_19)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Unaudited Condensed Consolidated Balance Sheets](#i28d7a96df527407a965df6fe789d1095_19)</u> | <u>[5](#i28d7a96df527407a965df6fe789d1095_19)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Unaudited Condensed Consolidated Statements of Operations](#i28d7a96df527407a965df6fe789d1095_25)</u> | <u>[6](#i28d7a96df527407a965df6fe789d1095_25)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](#i28d7a96df527407a965df6fe789d1095_31)</u> | <u>[7](#i28d7a96df527407a965df6fe789d1095_31)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Unaudited Condensed Consolidated Statements of Cash Flows](#i28d7a96df527407a965df6fe789d1095_37)</u> | <u>[9](#i28d7a96df527407a965df6fe789d1095_37)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Unaudited Condensed Consolidated Financial Statements](#i28d7a96df527407a965df6fe789d1095_40)</u> | <u>[11](#i28d7a96df527407a965df6fe789d1095_43)</u> |
| &nbsp;&nbsp;<u>[Item 2. Management's Discussion and Analysis and Results of Operations](#i28d7a96df527407a965df6fe789d1095_94)</u> | <u>[27](#i28d7a96df527407a965df6fe789d1095_94)</u> |
| &nbsp;&nbsp;<u>[Item 3. Quantitative and Qualitative Disclosures About Market Risk](#i28d7a96df527407a965df6fe789d1095_115)</u> | <u>[35](#i28d7a96df527407a965df6fe789d1095_115)</u> |
| &nbsp;&nbsp;<u>[Item 4. Controls and Procedures](#i28d7a96df527407a965df6fe789d1095_118)</u> | <u>[35](#i28d7a96df527407a965df6fe789d1095_118)</u> |
| **<u>[PART II - OTHER INFORMATION](#i28d7a96df527407a965df6fe789d1095_121)</u>** | <u>[37](#i28d7a96df527407a965df6fe789d1095_124)</u> |
| &nbsp;&nbsp;<u>[Item 1. Legal Proceedings](#i28d7a96df527407a965df6fe789d1095_124)</u> | <u>[37](#i28d7a96df527407a965df6fe789d1095_124)</u> |
| &nbsp;&nbsp;<u>[Item 1A. Risk Factors](#i28d7a96df527407a965df6fe789d1095_127)</u> | <u>[38](#i28d7a96df527407a965df6fe789d1095_127)</u> |
| &nbsp;&nbsp;<u>[Item 6. Exhibits](#i28d7a96df527407a965df6fe789d1095_142)</u> | <u>[38](#i28d7a96df527407a965df6fe789d1095_142)</u> |
| **<u>[Signatures](#i28d7a96df527407a965df6fe789d1095_145)</u>** | <u>[40](#i28d7a96df527407a965df6fe789d1095_145)</u> |

---

------

**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains express or implied "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact contained in this Report are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "could," "will," "would," "should," "expect," "plan,", "anticipate," "believe," "estimate," "intend," "predict," "seek," "contemplate," "project," "continue," "potential," "ongoing" or the negative of these terms or other comparable terminology. Forward-looking statements also include the assumptions underlying or relating to such statements.

Although we believe that the expectations reflected in the forward-looking statements contained herein are reasonable, such expectations or any of the forward-looking statements may prove to be incorrect and actual results could differ materially from those projected or assumed in the forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to inherent risks and uncertainties, including, but not limited to, the risk factors set forth in Part II, Item 1A "Risk Factors" below and for the reasons described elsewhere in this Quarterly Report on Form 10-Q. All forward-looking statements and reasons why results may differ included in this Quarterly Report on Form 10-Q are made as of the date hereof and we do not intend to update any forward-looking statements except as required by law. While certain risk may be within our ability to control, some risks are entirely outside of our control, and we are not in real time able to determine in which risks are within our control and which are not. We may initially determine in good faith the degree to which a certain set of risks are within our control and later learn such determinations were incorrected or incomplete.

Forward-looking statements included in this Quarterly Report on Form 10-Q refer to, but are not limited to, statements concerning the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• substantial uncertainties regarding our exploration of strategic alternatives to maximize stockholder value, including whether we are able to identify potential partners and consummate transactions, in a timely manner or at all, whether we would be able to obtain sufficient funding to complete this process and whether any such transactions would generate value for stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to raise the additional capital that is needed to fund our operations and our pursuit of strategic alternatives, particularly given our current lack of a revenue source and the substantial doubt about our ability to continue as a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to remain listed on The Nasdaq Capital Market ("Nasdaq"), including the ability to maintain minimum stockholders' equity and stock price, and comply with applicable governance requirements, for continued listing on Nasdaq;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any strategic plan or alternative that we may identify and pursue may involve unexpected costs, liabilities and/or delays and may not deliver anticipated benefits to our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our estimates of expenses, use of cash, timing of future cash needs, ongoing losses and capital requirements may prove to be inaccurate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• uncertainty about reaction from investors and potential business partners to our recent changes of control and board of directors (the "Board") and management composition and the future direction of the Company, and the ability of our controlling stockholders and new Board members and management to earn the confidence of investors and potential partners despite limited experience with U.S. public companies, and how these factors may impact our ability to obtain funding and execute any strategic alternatives that we may identify;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential turnover of senior management in the near term, and any inability to attract and retain qualified management and other key personnel, could create significant continuity risk and could impair our ability to raise capital and execute on our exploration of strategic alternatives;

------

**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to comply with all applicable laws, which may be particularly challenging given the recent turnover in our Board and management, significant reductions in force, limited resources and the potential to enter into new business areas with which we have no past experience;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of investors to assess our operations, which are primarily within subsidiaries whose performance are stated on the Company's financial statements on a consolidated basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain and maintain intellectual property protection for our technologies and our ability to operate our business without infringing the intellectual property rights of others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of macroeconomic conditions, including global inflation, actions taken by central banks to counter inflation, capital market and bank instability, exchange rate fluctuations, supply chain disruptions and energy and fuel prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of government laws and regulations, including but not limited to taxes and tariffs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors that may impact our financial results and condition and our ongoing strategic efforts.

These statements relate to future events or our future operational or financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed in Part II, Item 1A of this Quarterly Report on Form 10-Q under the section titled "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q.

Any forward-looking statement in this Quarterly Report on Form 10-Q reflects our current view with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our business, results of operations and future growth. Given these uncertainties, you should not place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this Quarterly Report on Form 10-Q and the documents that we reference herein and have filed with the SEC as exhibits thereto completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements. Except as required by law, we assume no, and specifically decline any, obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

Except where the context otherwise requires, in this Quarterly Report on Form 10-Q, the "Company," "Exicure," "we," "us" and "our" refers to Exicure, Inc., a Delaware corporation, and, where appropriate, our subsidiaries.

------

**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**PART I - FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**EXICURE, INC.**

**UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS** 

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **March 31,<br>2025** | **December 31,<br>2024** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $10420 | $12508 |
| &nbsp;&nbsp;&nbsp;Other receivable | 172 | 521 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 713 | 644 |
| Total current assets | 11305 | 13673 |
| Other noncurrent assets | 1449 | 1357 |
| Property and equipment, net | 565 | 26 |
| Right-of-use asset | 237 |  |
| Intangible asset | 3784 |  |
| Goodwill | 3340 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $20680 | $15056 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $1210 | $1031 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 2679 | 2040 |
| Total current liabilities | 3889 | 3071 |
| Lease liability, noncurrent | 27 | 5213 |
| Contingent consideration | 5382 |  |
| Total liabilities | 9298 | 8284 |
| Commitments and Contingencies (Note 12) |  |  |
| Stockholders' equity: |  |  |
| Preferred stock, $0.0001 par value per share; 10,000,000 shares authorized, no shares issued and outstanding, March 31, 2025 and December 31, 2024 |  |  |
| Common stock, $0.0001 par value per share; 200,000,000 shares authorized, 6,317,771 issued and outstanding, March 31, 2025; 6,026,841 issued and outstanding, December 31, 2024 | 1 | 1 |
| Additional paid-in capital | 207635 | 206035 |
| Accumulated deficit | (196254) | (199264) |
| Total stockholders' equity | 11382 | 6772 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $20680 | $15056 |

---

See accompanying notes to the unaudited condensed consolidated financial statements.

------

**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**EXICURE, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2025** | **2024** |
| Revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Revenue | $— | $500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue |  | 500 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Research and development expense | 808 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative expense | 2217 | 1336 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on early lease termination | (5974) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | (2949) | 1336 |
| Operating income (loss) | 2949 | (836) |
| Other income (expense), net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividend income | 27 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income | 5 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on settlement of accounts payables | 191 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent liability | (136) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (26) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income, net | 61 | 7 |
| Net income (loss) before provision for income taxes | 3010 | (829) |
| Provision for income taxes |  |  |
| Net income (loss) | $3010 | $(829) |
| Net income (loss) per common share: \* |  |  |
| Basic | $0.49 | $(0.48) |
| Diluted | $0.49 | $(0.48) |
| Weighted-average common shares outstanding: |  |  |
| Basic | 6172268 | 1730201 |
| Diluted | 6182679 | 1730201 |

---

\* reflects a one-for-five (1:5) reverse stock split effected on August 27, 2024

See accompanying notes to the unaudited condensed consolidated financial statements.

------

**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**EXICURE, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**

**(in thousands, except shares)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Common Stock** | | | |
| | **Shares** |<br>**Additional Paid-in- Capital** |<br>**Accumulated Deficit** |<br>**Total Stockholders' Equity** |
| **Balance at January 1, 2025** | **6026841** | $**206035** | $**(199264)** | $**6772** |
| Vesting of restricted stock units | 22 |  |  |  |
| Issuance of common stock, net | 290908 | 1600 |  | 1600 |
| Net income |  |  | 3010 | 3010 |
| **Balance at March 31, 2025** | **6317771** | $**207635** | $**(196254)** | $**11382** |

---

See accompanying notes to the unaudited condensed consolidated financial statements.

------

**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**EXICURE, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**

**(in thousands, except shares)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Common Stock** | | | |
| | **Shares \*** |<br>**Additional Paid-in- Capital** |<br>**Accumulated Deficit** |<br>**Total Stockholders' Equity** |
| **Balance at January 1, 2024** | **1832988** | $**192594** | $**(189563)** | $**3031** |
| Equity-based compensation |  | 5 |  | 5 |
| Vesting of restricted stock units | 40 |  |  |  |
| Net loss |  |  | (829) | (829) |
| **Balance at March 31, 2024** | **1833028** | $**192599** | $**(190392)** | $**2207** |

---

\* reflects a one-for-five (1:5) reverse stock split effected on August 27, 2024

See accompanying notes to the unaudited condensed consolidated financial statements.

------

**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**EXICURE, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(in thousands)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income (loss) | $3010 | $(829) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 61 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity-based compensation |  | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use asset | 47 | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | 136 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on early lease termination | (5974) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on settlement of accounts payables | (191) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets | 26 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivable | 1339 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 59 | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (427) | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 316 | (43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  | (196) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (1598) | (450) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Acquisition of GPCR Therapeutics USA Inc. | (2090) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (2090) |  |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from common stock offering | 1600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by provided by financing activities | 1600 |  |
| Net decrease in cash, cash equivalents, and restricted cash | (2088) | (450) |
| Cash, cash equivalents, and restricted cash - beginning of period | 12508 | 2016 |
| Cash, cash equivalents, and restricted cash - end of period | $10420 | $1566 |

---

See accompanying notes to the unaudited condensed consolidated financial statements.

------

**EXICURE, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2025** | **2024** |
| Supplemental disclosure of cash flow information |  |  |
| Non-cash investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclass prepaid expenses from noncurrent to current | $107 | $— |

---

See accompanying notes to the unaudited condensed consolidated financial statements.

------

**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

**1. Description of Business, Basis of Presentation and Going Concern**

***Description of Business***

Exicure, Inc. has historically been an early-stage biotechnology company focused on developing nucleic acid therapies targeting ribonucleic acid against validated targets. In September 2022, the Company announced a significant reduction in force, suspension of preclinical activities and halting of all research and development, and that the Company was exploring strategic alternatives to maximize stockholder value. In 2024, the Company entered into a licensing agreement for patents related to one of our historical drug candidates, and received a small, one-time payment and an entitlement to only modest royalties on future sales of the licensed technology that was not material. The Company then sold some of its samples related to the licensed product. Also in 2024, the Company entered into a sale agreement to sell our historical biotechnology intellectual property and other assets pursuant to the purchase agreement. The Company continues to engage in a broader exploration of strategic alternatives, including but not limited to private company acquisitions, raising additional capital, strategic partnerships, some combination of these, and other arrangements that are in management's view worth exploring.

On January 19, 2025, the Company entered into a share purchase agreement ("Share Purchase Agreement") with GPCR Therapeutics Inc, a Korean corporation, ("GPCR"), pursuant to which we acquired from GPCR all of the issued and outstanding equity securities of its then-subsidiary, GPCR Therapeutics USA Inc., a California corporation ("GPCR USA"). Upon closing under the Share Purchase Agreement, the Company purchased all of GPCR USA's six million (6,000,000) common shares that were issued and outstanding for $1.6 million, causing GPCR USA to become a wholly owned subsidiary of Exicure.

In connection with the closing of the Share Purchase Agreement, the Company and GPCR entered into a License and Collaboration Agreement to further develop and commercialize GPCR's technologies related to certain intellectual property and patents (the "License and Collaboration Agreement"). The License and Collaboration Agreement requires the Company to make milestone payments to GPCR upon the achievement of specific milestone events relating to clinical trials, marketing authorizations, and net sales, as well as for the Company to pay a recurring royalty payments, as set forth in the agreement.

GPCR USA has an ongoing Phase 2 clinical trial focused on blood cancer patients, particularly those eligible for hematopoietic stem cell transplantation, commonly referred to as bone marrow transplant. Its current clinical trial involves the combined administration of GPC-100 (a small molecule antagonist with a high binding affinity to a chemokine receptor) and propranolol (a beta-blocker drug that affects the heart and circulation) for mobilization of stem cells in Multiple Myeloma patients. GPCR USA plans to complete the administration of GPC-100 to 20 patients in the second quarter of 2025 and aims to announce the clinical trial results during the fourth quarter of 2025.

On March 26, 2025, the Company formed KC Creation Co., Ltd. ("KC Creation"), a wholly-owned South Korean subsidiary. It was established based on the future growth strategies, such as a collaboration with GPCR USA and Korean bio-platform companies, response to ESG trends by development of infrastructure based on eco-friendly renewable energy, and diversification of business and utilization of global growth potential of Korean entertainment content. These business lines are designed to enhance the Company's mid- and long-term value through investment recovery potential and brand synergy.

Throughout these unaudited condensed consolidated financial statements, the terms the "Company," and "Exicure" refer to Exicure, Inc.

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**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

***Basis of Presentation***

The accompanying unaudited condensed consolidated financial statements as of March 31, 2025 and December 31, 2024, and for the three months ended March 31, 2025 and 2024, have been presented in conformity with accounting principles generally accepted in the United States of America ("GAAP") and with instructions to Form 10-Q and Article 10 of Regulation S-X under the Exchange Act.

***Principles of Consolidation***

The accompanying unaudited condensed consolidated financial statements include the accounts of Exicure and its wholly owned subsidiaries, Exicure Operating Company, GPCR USA, and KC Creation. All intercompany transactions and accounts are eliminated in consolidation.

***Reverse Stock Split***

After obtaining stockholder approval at an August 15, 2024 Special Meeting of Stockholders and a written Board consent dated August 20, 2024, the Company effected a reverse stock split of its Common Stock on August 27, 2024 at a ratio of 1-for-5 as of 5:00 p.m. Eastern Time. No fractional shares were issued in connection with the reverse stock split. Stockholders of record who would otherwise be entitled to receive a fractional share received a full share in lieu thereof. An additional 102,837 shares were issued as a result of the fractional shares rounded up. All information presented in the accompanying unaudited condensed consolidated financial statements, unless otherwise indicated herein, assumes a 1-for-5 reverse stock split of Common Stock, and unless otherwise indicated, all such amounts and corresponding conversion price or exercise price data set forth herein have been adjusted to give effect to such assumed reverse stock split.

***Unaudited Interim Financial Information***

The financial statements provided herewith are unaudited. Such statements include interim condensed consolidated balance sheet as of March 31, 2025, the interim condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024, the interim condensed consolidated statements of changes in stockholders' equity for the three months ended March 31, 2025 and 2024, and the interim condensed consolidated statements of cash flows for the three months ended March 31, 2025 and 2024 are unaudited. In the opinion of management, the interim unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited financial statements and with instructions to Form 10-Q and Article 10 of Regulation S-X under the Exchange Act; and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company's financial position as of March 31, 2025, the results of its operations for the three months ended March 31, 2025 and 2024, and the results of its cash flows for the three months ended March 31, 2025 and 2024. The financial data and other information disclosed in these notes related to the three months ended March 31, 2025 and 2024 are unaudited. The results for the three months ended March 31, 2025 are not necessarily indicative of results to be expected for the year ending December 31, 2025, or any other interim periods, or any future year or period. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2024, included in the Company's corresponding Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 18, 2025 (the "Annual Report").

***Going Concern***

At each reporting period, the Company evaluates whether there are conditions or events that raise substantial doubt about the Company's ability to continue as a going concern for a period of one year after the date that the financial statements are issued. The Company is required to make certain additional disclosures if it concludes substantial doubt exists that is not alleviated by the Company's plans or when its plans alleviate substantial doubt about the Company's ability to continue as a going concern.

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern for a period of one year after the date that the financial statements are issued. As of March 31, 2025, the Company expects to incur significant expenses and negative cash flows for the foreseeable future. As of March 31, 2025, the Company's cash and cash equivalents were $10,420. Management believes that the Company's existing cash and cash equivalents are insufficient to continue to fund its operating expenses, and additional funding is needed. There can be no assurance that such additional financing will be available and, if available, can be obtained on acceptable terms.

Management believes that, given the Company's current cash position, operating plans and forecasted negative cash flows from operating activities over the next twelve months, there is substantial doubt about the Company's ability to continue as a going concern within one year after the date these financial statements are issued. Additional financing will be needed to fund our ongoing operations, support of GPCR USA's operations, and exploration of strategic alternatives and pursuing any alternatives that we identify.

The accompanying unaudited condensed consolidated financial statements have been prepared as though the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

**2. Significant Accounting Policies**

The Company's significant accounting policies are disclosed in the audited consolidated financial statements and the notes thereto, which are included in the in the Annual Report on Form 10-K (the "Annual Report") for the year ended December 31, 2024 filed with the SEC on March 18, 2025. Since the date of those audited consolidated financial statements, there have been no material changes to the Company's significant accounting policies.

***Use of Estimates***

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Management bases its estimates on certain assumptions which it believes are reasonable in the circumstances and while actual results could differ from those estimates, management does not believe that any change in those assumptions in the near term would have a significant effect on the Company's financial position, results of operations or cash flows. Actual results in future periods could differ from those estimates.

***Acquisition Accounting***

The fair value of the consideration exchanged in a business combination is allocated to tangible assets and identifiable intangible assets acquired and liabilities assumed at acquisition date fair value. Goodwill is measured as the excess of the consideration transferred over the net fair value of identifiable assets acquired and liabilities assumed. The accounting for an acquisition involves a considerable amount of judgment and estimation. Cost, income, market or a combination of approaches may be used to establish the fair value of consideration exchanged, assets acquired, and liabilities assumed, depending on the nature of those items. The valuation approach is determined in accordance with generally accepted valuation methods. Key areas of estimation and judgment may include the selection of valuation approaches, cost of capital, market characteristics, cost structure, impacts of synergies, and estimates of terminal value, among other factors.

While the Company uses estimates and assumptions as part of the purchase price allocation process to estimate the fair value of assets acquired and liabilities assumed, estimates are inherently uncertain and subject to refinement.

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

***Goodwill and Indefinite-Lived Intangible Assets***

Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the assets acquired and liabilities assumed. The Company's indefinite-lived intangible assets, which consist of in-process research and development ("IPR&D"), acquired in the GPCR USA acquisition were recorded at fair value on their acquisition date. Goodwill is required to be evaluated for impairment on an annual basis or whenever events or changes in circumstances indicate the asset may be impaired. An entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. These qualitative factors include: macroeconomic and industry conditions, cost factors, overall financial performance and other relevant entity-specific events. If the entity determines that this threshold is met, then the company may apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The company determines fair value through multiple valuation techniques and weights the results accordingly. The company is required to make certain subjective and complex judgments in assessing whether an event of impairment of goodwill has occurred, including assumptions and estimates used to determine the fair value of its reporting units. The company has elected to perform its annual goodwill impairment review on December 31 of each year.

***Contingent consideration***

Contingent consideration relates to the potential payment for an acquisition that is contingent upon the achievement by the acquired business of revenue targets. The acquisition of GPCR USA included a contingent consideration arrangement that requires additional consideration to be paid by the Company to GPCR based on the License and Collaboration Agreement. The Company recorded contingent consideration at fair value based on the consideration expected to be transferred. For potential payments related to target achievements, the Company estimated the fair value based on the probability of achievement of such milestones. The assumptions utilized in the calculation of the fair value include the probability assessments of the completion of specific milestones and annual net sales of GPC-100 products in the future and the volatility of these milestones, appropriately discounted considering the uncertainties associated with the obligation. The contingent consideration was recorded as a long-term liability and is remeasured each reporting period, and subsequent changes in fair value are recognized within other income (expense) in the Company's Statement of Operations.

***Recent Accounting Pronouncements***

In November 2024, the Financial Accounting Standards Board ("FASB") issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income -Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses." The standard requires that public business entities disclose additional information about specific expense categories in the notes to financial statements for interim and annual reporting periods. The standard will become effective for us for our fiscal year 2027 annual financial statements and interim financial statements thereafter and may be applied prospectively to periods after the adoption date or retrospectively for all prior periods presented in the financial statements, with early adoption permitted. The Company plans to adopt the standard when it becomes effective in our fiscal year 2027 annual financial statements, and the Company is currently evaluating the impact this guidance will have on the disclosures included in the Notes to the Consolidated Financial Statements.

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Update No. 2023-09 aims to enhance the transparency and decision usefulness of income tax disclosures. Update No. 2023-09 modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state, and foreign). Update 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. Update No. 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company has not yet adopted this standard for our fiscal year 2024 annual financial statements and is currently evaluating the impact this guidance will have on the disclosures included in the Notes to the Consolidated Financial Statements. See Note 10 – Income Taxes for further information.

**3. Business Acquisition**

On January 19, 2025, the Company acquired 100% of GPCR USA pursuant to the Share Purchase Agreement (the "Acquisition"). This Acquisition was accounted for under the acquisition method of accounting under Accounting Standards Codification ("ASC") 805. Under the acquisition method, the total purchase price of the acquisition is allocated to the net tangible and identifiable intangible assets acquired and liabilities assumed based on the fair values as of the date of the acquisition. Consideration transferred is the sum of the acquisition date fair values of the assets transferred, the liabilities incurred by the acquirer to the former owners of the acquiree, and the equity interests issued by the acquirer to the former owners of the acquiree. As noted above, the Company still needs to issue $0.5 million of its equity to GPCR per the License and Collaboration Agreement and that is recorded as a liability in accrued expenses. The total purchase price consideration consisted of the following:

---

| | |
|:---|:---|
| Cash per Share Purchase Agreement | $1635 |
| Cash per License and Collaboration Agreement | 500 |
| Equity Consideration per License and Collaboration Agreement | 500 |
| Fair Value of Contingent Consideration | 5246 |
| Total purchase price consideration | $7881 |

---

The Company recorded the assets acquired and liabilities assumed as of the date of the Acquisition based on the information available at that date. The following table presents the allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed as of the Acquisition date:

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**<u>[**Table of Contents**](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

---

| | |
|:---|:---|
| <u>Assets acquired:</u> |  |
| Cash and cash equivalents | $45 |
| Prepaid expenses and other current assets | 1013 |
| Other noncurrent asset | 198 |
| Property and equipment | 626 |
| Right-of-use asset | 285 |
| Intangible assets | 3784 |
| Goodwill | 3340 |
| &nbsp;&nbsp;Total assets acquired | 9291 |
| <u>Liabilities assumed:</u> |  |
| Accounts payable | 606 |
| Accrued expenses and other current liabilities | 92 |
| Operating lease liabilities, current and noncurrent | 712 |
| Total liabilities acquired | 1410 |
| &nbsp;&nbsp;Net assets acquired | $7881 |

---

**4. Supplemental Balance Sheet Information**

***Prepaid expenses and other current assets***

---

| | | |
|:---|:---|:---|
| | **March 31, 2025** | **December 31, 2024** |
| Prepaid insurance | $521 | $444 |
| Lease costs |  | 37 |
| Prepaid professional fees | 70 | 70 |
| Prepaid software | 45 | 61 |
| Other | 77 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | $713 | $644 |

---

***Property and equipment, net***

---

| | | |
|:---|:---|:---|
| | **March 31, 2025** | **December 31, 2024** |
| Scientific equipment | $506 | $246 |
| Computers and software | 10 | 3 |
| Furniture and fixtures | 45 | 30 |
| Leasehold Improvements | 39 |  |
| Auto | 26 |  |
| Property and equipment, gross | 626 | 279 |
| Less: accumulated depreciation and amortization | (61) | (253) |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | $565 | $26 |

---

Depreciation and amortization expense was $61 and $7 for the three months ended March 31, 2025 and 2024, respectively. During the period ended March 31, 2025, the Company wrote off the $26 of property and equipment from the year ended December 31, 2024 and recognized a loss of $26 in the accompanying statement of operations.

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

***Other noncurrent assets***

---

| | | |
|:---|:---|:---|
| | **March 31, 2025** | **December 31, 2024** |
| Prepaid insurance | 1449 | 1357 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other noncurrent assets | $1449 | $1357 |

---

***Accrued expenses and other current liabilities***

---

| | | |
|:---|:---|:---|
| | **March 31, 2025** | **December 31, 2024** |
| Current lease liability | $592 | $722 |
| Accrued payroll-related expenses | 40 |  |
| Accrued litigation legal fee | 1085 | 1138 |
| Accrued separation agreement | 200 |  |
| Accrued Registration Delay Payments | 201 |  |
| Accrual for equity issuance per License Agreement | 500 |  |
| Accrued other expenses | 61 | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | $2679 | $2040 |

---

**5. Leases**

***Redwood City Lease***

The Company's lease arrangements at March 31, 2025 consist of a sublease for office space at its headquarters in Redwood City, California that commenced in July 2022 (the "Redwood Sublease"). The Redwood Sublease is classified as an operating lease.

GPCR USA is subleasing approximately 8,392 square feet of office space in Redwood City, California for its operations that began on July 15, 2022. This 45-month sublease is an operating lease agreement that ends on April 14, 2026. The monthly base rent during the remaining term is approximately $50 for the first six months. Base rent thereafter is subject to an increase of 3% over the remaining nine months.

Because the rate implicit in this lease was not readily determinable, the Company used a third party to calculate its incremental borrowing rate of 6.3% on the Commencement Date to determine the fair value of the lease payments over the remaining term. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company recognized the right of use asset at its fair value of $285 and a related lease liability of $712 on the date of the Acquisition.

***Chicago Lease***

On February 13, 2025, the Company executed a Lease Termination Agreement with its landlord related to the Chicago, Illinois lease effective as of January 31, 2025 (the "Chicago Lease "). As a result of this early termination for the Chicago Lease that commenced on July 1, 2020 and would have ended on June 30, 2030, the Company vacated the Chicago office (the "Premises") and stopped paying any further amounts owed to its landlord. There were no additional fees or costs related to the early termination. The Company recognized a $6 million gain in the first quarter of 2025 related to this early termination.

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

The following table summarizes lease costs in the Company's unaudited condensed consolidated statement of operations:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2025** | **2024** |
| Operating lease costs | $146 | $143 |
| Variable lease costs | 87 | 120 |
| Short term lease costs |  | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease costs | $233 | $274 |

---

The Company made cash payments for operating leases $109 and $0 during the three months ended March 31, 2025 and 2024, respectively, for the Chicago Lease. The Company made cash payments for operating leases $0 during the three months ended March 31, 2025 for the Redwood Sublease, amounts owed related to the Redwood Sublease are included in accounts payable as of March 31, 2025.

***Sublease of the Chicago Premises***

The Company entered into a sublease agreement with Cyclopure, Inc. (the "Subtenant") to sublease approximately 57% of the Premises related to the Chicago Lease pursuant to that certain sublease agreement dated as of May 4, 2023 (the "Sublease Agreement"). The term of this Sublease Agreement began on May 15, 2023 and would have ended on June 30, 2030, the expiration date of the Chicago Lease. The first three months under the Sublease Agreement were rent free. Beginning August 15, 2023, the Company began charging the Subtenant for 57% of the base rent under the Chicago Lease, and the subtenant was responsible for its pro rata share of operating expenses and taxes payable. In 2024, the Company did not receive payment from the Subtenant as the Subtenant paid the Company's landlord directly. The Company received sublease receipts of $173 during the three months ended March 31, 2024 that was recorded in the Company's condensed consolidated statement of operations.

On April 8, 2025, the Company and the Subtenant entered into a Sublease Termination Agreement in which the parties agreed to terminate the Sublease Agreement effective as of November 30, 2024 and release each other from any liabilities, obligations or responsibilities arising under or in connection with the Sublease Agreement or the subleased Premises upon the Subtenant's payment of $121, which was received on April 14, 2025.

**6. Debt**

On May 3, 2024, the Company executed a promissory note (the "Note") and subsequently received a loan in the amount of $300 from an individual investor. All principal and accrued interest were due and payable on the earlier of (i) May 3, 2025 or (ii) upon an event of default, at such time, such amounts declared by the investor would become due and payable by Company. Interest accrued on this Note at 6.0% per annum and was payable at maturity. The Note was converted into stock in connection with the September 12, 2024 exchange described below.

On June 3, 2024, the Company executed another promissory note ("DGP Note") and subsequently received a loan in the amount of $700 from DGP Co., Ltd. ("DGP"), a related party. All principal and accrued interest were due and payable on the earlier of (i) March 25, 2025 or (ii) upon an event of default, at such time, such amounts declared by the investor would become due and payable by Company. Interest accrued on this DGP Note at 6.0% per annum and was payable at maturity. The DGP Note was converted into stock in connection with the September 12, 2024 exchange described below.

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

On September 12, 2024, the Company executed two Debt for Equity Exchange Agreements converting the existing debt and related interest described above into shares of its Common Stock. The Company exchanged in full satisfaction of the principal and accrued interest obligations on the Note into 101,991 of its Common Stock shares. The Company exchanged in full satisfaction of the principal and accrued interest obligations on the DGP Note into 237,223 shares of its Common Stock. As this was considered a troubled debt restructuring with a related party, the difference between fair value and book value was recognized within additional paid in capital.

**7. Stockholders' Equity**

***Preferred Stock***

As of March 31, 2025 and December 31, 2024, the Company had authorized 10,000,000 shares of preferred stock, par value $0.0001 and with no shares issued and outstanding.

***Common Stock***

As of March 31, 2025 and December 31, 2024, the Company had authorized 200,000,000 shares of Common Stock, par value $0.0001. As of March 31, 2025 and December 31, 2024, the Company had 6,317,771 and 6,026,841 shares issued and outstanding, respectively.

The holders of Common Stock are entitled to one vote per share on all matters to be voted upon by the Company's stockholders, and there are no cumulative rights. Subject to preferences that may be applicable to any outstanding preferred stock, the holders of Common Stock are entitled to receive ratably any dividends that may be declared from time to time by the Board out of funds legally available for that purpose. In the event of the Company's liquidation, dissolution or winding up, the holders of Common Stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock then outstanding. Common Stock has no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to Common Stock. The outstanding shares of Common Stock are fully paid and non-assessable.

***Common Stock Purchase Agreements***

In an agreement dated November 6, 2024 and executed on November 12, 2024, the Company entered into a common stock purchase agreement (the "Initial Common Stock Purchase Agreement") with HiTron Systems Inc. ("HiTron"), pursuant to which the Company agreed to issue and sell to HiTron 433,333 shares (the "Initial Shares") of Common Stock, at a purchase price of $3.00 per share, or approximately $1.3 million total.

On November 13, 2024, in a subsequent agreement (the "Subsequent Common Stock Purchase Agreement"), the Company agreed to sell and issue to HiTron 2,900,000 additional shares of Common Stock for $8.7 million, at a purchase price of $3.00 per share (the "Subsequent Purchase"). The Subsequent Common Stock Purchase Agreement provided HiTron with the right to nominate additional members of the Board in proportion to its equity interest, subject to approval by the Board and compliance with SEC and Nasdaq rules.

On December 9, 2024, the Company entered into a Common Stock Purchase Agreement with SangSangIn Investment & Securities Co., Ltd. ("SangSang"), pursuant to which, on December 12, 2024, the Company issued and sold to SangSang 433,332 shares of Common Stock, at a purchase price of $4.61 per share.

On December 10, 2024, the Company entered into a common stock purchase agreement (the "MIRTO Purchase Agreement") with MIRTO Co., LTD. ("MIRTO"), pursuant to which the Company agreed to issue and sell to MIRTO 87,808 shares of its Common Stock, for an aggregate purchase price of approximately $405, at a purchase price per share of $4.61. The transactions under the MIRTO Purchase Agreement closed on December 24, 2024.

On February 14, 2025, the Company entered into a Common Stock Purchase Agreement with Shin Chang Partners and RMS0718 Co., Ltd., pursuant to which the Company agreed to issue and sell to each of these

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

purchasers 145,454 shares of Common Stock, for an aggregate purchase price of approximately $1.6 million, at a purchase price of $5.50 per share.

***Registration Rights Agreements***

In connection with the HiTron, SangSang, MIRTO, Shin Chang Partners and RMS0718 Co., Ltd. (the "Purchasers"), Common Stock Purchase Agreements, the Company entered into registration rights agreements (the "Registration Rights Agreements") with each of the Purchasers, pursuant to which the Company agreed to register the resale of the shares of Common Stock purchased by these purchasers. Under the Registration Rights Agreements, the Company has agreed to file registration statements covering the resale of the shares no later than the sixth (60<sup>th</sup>) day following the applicable closing (the "Filing Deadline"). The Company has agreed to use reasonable best efforts to cause such registration statement to become effective as promptly as practicable after the filing thereof but in any event on or prior to the Effectiveness Deadline (as defined in these Registration Rights Agreements), and to keep such registration statement continuously effective until the earlier of (i) the date the shares covered by such registration statement have been sold or may be resold pursuant to Rule 144 without restriction, or (ii) the date that is two (2) years following the applicable closing date. The Company has also agreed, among other things, to pay all reasonable fees and expenses (excluding any underwriters' discounts and commissions and all fees and expenses of legal counsel, accountants and other advisors for the Purchasers except as specifically provided in these Registration Rights Agreements) incident to the performance of or compliance with these Registration Rights Agreements by the Company.

In the event a registration statement has not been filed within 90 days following the closing date, subject to certain limited exceptions, then the Company has agreed to make pro rata payments to the purchasers as liquidated damages in an amount equal to 0.5% of the aggregate amount invested by the respective purchasers in the shares per 30-day period or pro rata for any portion thereof for each such month during which such event continues, subject to certain caps set forth in the Registration Rights Agreements.

The Filing Deadline has passed for all these Registration Rights Agreements, however, and the Company is making its best efforts to file such registration statements as soon as reasonably possible. The Company paid $27 to CBI USA and accrued $191 to DGP pursuant to this provision as of December 31, 2024. On February 19, 2025, the Company received a waiver letter from DGP confirming they agreed to waive the outstanding $191 penalty amount owed to DGP and was recorded in other income in the Statement of Operations.

***Common Stock Warrants***

As of March 31, 2025 and December 31, 2024, warrants to purchase 10,022 shares of common stock at a price of $40.52 per share that were acquired in the December 2021 registered-direct offering transaction remain outstanding.

**8. Segment Reporting**

The Company manages our business activities on a consolidated basis and operate as a single operating segment: Biotechnology. The accounting policies of the Biotechnology segment are the same as those described in Note 2 – Summary of Significant Accounting Policies.

Our chief operating decision maker ("CODM") is our Director, President and Chief Executive Officer, Andy Yoo. The CODM uses net loss, as reported on our Consolidated Statements of Comprehensive Income, in evaluating performance of the Biotechnology segment and determining how to allocate resources of the Company as a whole. The CODM does not review assets in evaluating the results of the Biotechnology segment, and therefore, such information is not presented.

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

The following table provides the operating financial results of our Biotechnology segment:

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| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2025** | **2024** |
| Total revenues | $— | $500 |
| Significant segment expenses: |  |  |
| &nbsp;&nbsp;Research and development expense | 808 |  |
| &nbsp;&nbsp;General and administrative expense | 2217 | 1336 |
| &nbsp;&nbsp;(Gain) on lease termination | (5974) |  |
| Total operating expenses | (2949) | 1336 |
| Interest and dividend income | 32 | 7 |
| Change in fair value of contingent liability | (136) |  |
| Other income | 165 |  |
| Total other income | 61 | 7 |
| Segment net income (loss) | $3010 | $(829) |

---

**9. Income Taxes**

The Company incurred pretax income in the three months ended March 31, 2025, but doesn't expect to end the fiscal year with pretax income. The Company incurred pretax loss for the three months ended March 31, 2024, which consists entirely of loss in the United States and resulted in no provision for income tax expense during the periods then ended. The effective tax rate is 0% in each of the three months ended March 31, 2025 and 2024 because the Company will and has generated tax losses and has provided a full valuation allowance against its deferred tax assets.

**10. Income (Loss) Per Common Share**

Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is calculated using the treasury share method by giving effect to all potentially dilutive securities that were outstanding. Potentially dilutive options, restricted stock units and warrants to purchase common stock that were outstanding for the three months ended March 31, 2025 were included in the diluted income per share calculation. As a result of the net loss for the three months ended March 31, 2024, all potentially dilutive shares in such periods were anti-dilutive, and therefore, excluded from the computation of diluted net loss per share.

The following is the computation of net income (loss) per common share for the three months ended March 31, 2025 and 2024:

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2025** | **2024** |
| Net income (loss) | $3010 | $(829) |
| Weighted-average basic common shares outstanding | 6172268 | 1730201 |
| Dilutive effect of options, restricted stock units and warrants | 10411 |  |
| Weighted-average diluted common shares outstanding | 6182679 | 1730201 |
| **Net income (loss) per share:** |  |  |
| &nbsp;&nbsp;Basic | $0.49 | $(0.48) |
| &nbsp;&nbsp;Diluted | $0.49 | $(0.48) |

---

To the extent that securities are "anti-dilutive," they are excluded from the calculation of diluted net income (loss) per share.

---

| | | |
|:---|:---|:---|
| | **As of March 31,** | **As of March 31,** |
| | **2025** | **2024** |
| Options to purchase common stock | 131 | 2,340 |
| Restricted stock units | 164 | 466 |
| Warrants to purchase common stock | 10,022 | 10,022 |

---

**11. Fair Value Measurements**

ASC Topic 820, *Fair Value Measurement*, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value, as follows: Level 1 Inputs - unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date; Level 2 Inputs - other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Inputs - unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Total** | **Level 1** | **Level 2** | **Level 3** |
| <u>Assets</u> |  |  |  |  |
| Cash equivalents: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Money market funds | $5027 | $5027 | $— | $— |
| Total financial assets | $5027 | $5027 | $— | $— |
| <u>Liabilities</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contingent consideration | $5382 | $— | $— | $5382 |
| Total financial liabilities | $5382 | $— | $— | $5382 |

---

Assumptions utilized in the valuation of Level 3 liabilities are described as follows:

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

---

| | | | |
|:---|:---|:---|:---|
| | **As of January 19, 2025 and March 31, 2025** | **As of January 19, 2025 and March 31, 2025** | **As of January 19, 2025 and March 31, 2025** |
|<br>**Milestone** | **Probability Of Success** | **Payment Date** | **Discount Rate** |
| 1 | 24.6% | 11/30/2025 | 9.69% |
| 2 | 11.7% | 12/31/2025 | 9.69% |
| 3 | 10.8% | 6/30/2028 | 9.69% |
| 4 | 10.8% | 6/30/2028 | 9.69% |
| 5 | 10.8% | 12/31/2030 | 14.69% |
| 6 | 10.8% | 12/31/2031 | 14.69% |
| 7 | 10.8% | 12/31/2032 | 14.69% |

---

The following table sets forth a summary of the changes in the fair value of Level 3 contingent consideration that are measured at fair value on a recurring basis:

---

| | |
|:---|:---|
| | **2025** |
| <u>Contingent consideration</u> |  |
| Beginning balance, as of January 1 |  |
| Contingent consideration assumed in the GPCR USA acquisition | 5246 |
| Change in fair value of contingent consideration | 136 |
| Ending balance, as of March 31 | $5382 |

---

Cash and cash equivalents were measured using level 1 inputs as of March 31, 2025. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the year ended December 31, 2024 and year ended December 31, 2023. The carrying amount of the Company's receivables and payables approximate their fair value due to their maturity.

The Company uses the market approach and Level 1 and Level 2 inputs to value its cash equivalents and Level 2 inputs to value its short-term investments. The Company uses the market approach and Level 3 inputs to value its liabilities. There were no liabilities measured at fair value on a recurring basis as of as of December 31, 2024.

**12. Commitments and Contingencies**

***Legal Proceedings***

The Company and certain of its current and former officers and directors were defendants in Colwell v. Exicure, Inc. et al., a securities class action in the United States District Court for the Northern District of Illinois (Case No. 1:21-cv-06637) (the "Securities Class Action"). On May 26, 2023, plaintiffs filed a second amended complaint generally alleging that the defendants made false statements about the results of experiments concerning the drug XCUR-FXN and asserting claims for violations of federal securities laws under Section 10(b) and Section 20(a) of the Exchange Act and Rule 10b-5 thereunder. On October 8, 2024, the court granted preliminary approval of the settlement in the Securities Class Action and set a schedule for final approval proceedings, including a final approval hearing on January 13, 2025. On January 13, 2025, the court entered final judgment approving a settlement of this litigation, which settlement included a $5.625 million payment.

The settlement described above will be fully covered by insurance. However, the settlement includes a reservation of rights by the insurers against the Company for the unsatisfied portion of its self insured retainer. As a result, the Company recorded an accrual as of September 30, 2024 for the amount of the unsatisfied retainer of approximately $1.1 million needed to bridge the $2.5 million retainer that the Company is liable for under its self insured retention .

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

Three related stockholder derivative lawsuits were filed against certain of the Company's current and former officers and directors and against the Company as a nominal defendant between March and April 2022 in the United States District Court for the Northern District of Illinois (Puri v. Giljohann, et al. (Case No. 1:22-cv-01083); Sim v. Giljohann, et al. (Case No. 1:22-cv-01217)); and the United States District Court for the District of Delaware (Stourbridge Investments LLC v. Exicure, Inc. et al., Case No. 1:22-cv-00526)) (collectively, the "Derivative Complaints").

On March 18, 2022, James McNabb, through counsel, sent a written demand to the Company (the "Demand Letter") demanding that the Board investigate certain allegations and commence proceedings on the Company's behalf against certain of the Company's officers and directors for alleged breaches of fiduciary duties and corporate waste. The Derivative Complaints and the Demand Letter are currently stayed, and the Company is engaged in settlement discussions with plaintiffs' counsel regarding these matters.

On October 3, 2023, a former employee filed a complaint against the Company and its executives related to the former employee's separation from the Company. The parties proceeded with paper discovery and this matter did not settle at an in-person settlement conference on July 17, 2024. As a result, we are in the discovery phase of this litigation. The parties exchanged discovery and a status conference was held on February 11, 2025, wherein opposing counsel asserted alleged various discovery deficiencies. The parties are working through these alleged discovery deficiencies and anticipate deposing the plaintiff as well as witnesses on behalf of the Company and the individual defendants themselves in the coming months.

We may also be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

***Leases***

Refer to Note 5, *Leases*, for a discussion of the commitments associated with the Company's lease agreements.

**13. Related-Party Transactions**

On February 1, 2025, the Company and Paul Kang came to an understanding that they would execute an agreement by which Mr. Kang would provide transitional consulting services to the Company for the next 12 months. This Consulting Agreement between the Company and Alta Companies LTD ("Alta") was executed on February 27, 2025. The Company paid Alta $99 after execution the agreement and began paying him $12.5 monthly in February 2025. Mr. Kang is the President of Alta and was a director and officer of the Company through early 2025. He was a director from February 2023 to March 2025, and he was the CEO of the Company from August 2023 to January 2025.

Also, refer to the Note and the DGP Note in Note 6.

**14. License and Purchase Agreements**

***License Agreement***

On February 5, 2024, the Company entered into a patent license agreement to develop cavrotolimod for potential treatment for hepatitis with a private clinical stage biopharmaceutical company. Under the terms of the agreement, this biopharmaceutical company will receive an exclusive license in the field of hepatitis to all of the Company's relevant patents. $500 was paid to the Company after the execution of this agreement. This payment was recognized as revenue in accordance with ASC 606, *Revenue from Contracts with Customers*. The Company will also be entitled to modest royalties on future net sales on all licensed technology during the term of the licensed patents. The Company determined that the amount of variable consideration would be constrained until the period

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

the uncertainty related to the consideration is relieved. This patent license agreement was assigned to, and assumed by, the purchaser pursuant to this purchase agreement, but any royalties would be passed through to the Company.

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**EXICURE, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(in thousands, except share and per share data)**

**15. Subsequent Events**

***Employment Agreement Updates***

On June 6, 2025, the Board of the Company approved severance packages and adjustments to the annual base salaries of the Company's Chief Executive Officer, Andy Yoo, and its Chief Financial Officer, Seung Ik Baik. Mr. Yoo's salary was increased to $480, and Mr. Baik's salary was increased to $300. If the Company terminates employment of Mr. Yoo or Mr. Baik without cause, Mr. Yoo's termination will entitle him to receive severance equal to 24 months' base salary, and Mr. Baik's termination will entitle him to receive severance equal to 12 months' base salary. All changes to employment agreements are effective as of April 1, 2025. No other changes were made to the compensation or employment agreements of Mr. Yoo or Mr. Baik.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

*The following information should be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in this Quarterly Report on Form 10-Q and the audited financial information and the notes thereto included in our Annual Report on Form 10-K (the "Annual Report") for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission, or SEC, on March 18, 2025. This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Exchange Act, that involve significant risks and uncertainties. Our actual results, performance or experience could differ materially from what is indicated by any forward-looking statement due to various important factors, risks, uncertainties, assumptions and other factors including, but not limited to, those identified in this Quarterly Report on Form 10-Q and those set forth under the section titled "Risk Factors" in Part II, Item 1A of this Quarterly Report on Form 10-Q and in our other SEC filings.* 

**Overview**

Historically, we have been an early-stage biotechnology company focused on developing nucleic acid therapies targeting ribonucleic acid against validated targets. In September 2022, we announced a significant reduction in force, suspension of preclinical activities and halting of all research and development, and that we were exploring strategic alternatives to maximize stockholder value. In 2024, we entered into a licensing agreement for patents related to one of our historical drug candidates, and received a small, one-time payment and an entitlement to only modest royalties on future sales of the licensed technology that was not material. We then sold some of its samples related to the licensed product. Also in 2024, we entered into a sale agreement to sell our historical biotechnology intellectual property and other assets pursuant to the Purchase Agreement. Any value we may generate from this the Purchase Agreement will be primarily through royalties and license fees that we may receive in the future under the Purchase Agreement. However, whether we receive any royalties or licenses fees, and the amounts and timing thereof, are uncertain and out of our control.

We continue to engage in a broader exploration of strategic alternatives, including but not limited to private company acquisitions, raising additional capital, strategic partnerships, some combination of these, and other arrangements that are in management's view worth exploring. We obtained significant financing late in 2024 in order to continue operations and our exploration of strategic alternatives and consummate any transactions that we may identify.

On January 19, 2025, we entered into a Share Purchase Agreement with GPCR pursuant to which we acquired from GPCR all of the issued and outstanding equity securities of GPCR USA. In connection with the closing of the Share Purchase Agreement, the Company and GPCR entered into a License and Collaboration Agreement to further develop and commercialize GPCR's technologies related to certain intellectual property and patents. This License and Collaboration Agreement requires us to make milestone payments to GPCR upon the achievement of specific milestone events relating to clinical trials, marketing authorizations, and net sales, as well as for us to pay a recurring royalty payments, as set forth in the agreement.

GPCR USA has an ongoing Phase 2 clinical trial focused on blood cancer patients, particularly those eligible for hematopoietic stem cell transplantation, commonly referred to as bone marrow transplant. Its current clinical trial involves the combined administration of GPC-100 (a small molecule antagonist with a high binding affinity to a chemokine receptor) and propranolol (a beta-blocker drug that affects the heart and circulation) for mobilization of stem cells in Multiple Myeloma patients. GPCR USA plans to complete the administration of GPC-100 to 20 patients in the second quarter of 2025 and aims to announce the clinical trial results during the fourth quarter of 2025.

On March 26, 2025, the Company formed KC Creation, a wholly-owned South Korean subsidiary. It was established based on the future growth strategies, such as a collaboration with GPCR USA and Korean bio-platform companies, response to ESG trends by development of infrastructure based on eco-friendly renewable energy, and diversification of business and utilization of global growth potential of Korean entertainment content. These business lines are designed to enhance the Company's mid- and long-term value through investment recovery potential and brand synergy.

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***Operating, financing, and cash flow considerations***

Since our inception in 2011, we have primarily funded our operations through sales of our securities, loans and collaborations. Effective as of November 12, 2024, we entered into the Initial Common Stock Purchase Agreement with HiTron, pursuant to which we agreed to issue and sell to HiTron 433,333 shares of our Common Stock, for an aggregate purchase price of $1.3 million, at a purchase price per share of $3.00. On November 13, 2024, we entered into the Subsequent Common Stock Purchase Agreement, pursuant to which we agreed to sell and issue to HiTron 2,900,000 additional shares of Common Stock for an aggregate purchase price of $8.7 million, at a purchase price per share of $3.00. The issuance of such shares under the Subsequent Common Stock Purchase Agreement closed on December 24, 2024.

On December 9, 2024, we entered into a common stock purchase agreement (the "SangSang Purchase Agreement") with SangSang, pursuant to which we agreed to issue and sell to SangSang 433,332 shares of our Common Stock, for an aggregate purchase price of approximately $2.0 million, at a purchase price per share of $4.61. The transactions under the SangSang Purchase Agreement closed on December 24, 2024.

On December 10, 2024, the Company entered into a common stock purchase agreement MIRTO, pursuant to which the Company agreed to issue and sell to MIRTO 87,808 shares of its Common Stock, for an aggregate purchase price of approximately $405, at a purchase price per share of $4.61, which closed on December 24, 2024.

On February 14, 2025, the Company entered into a Common Stock Purchase Agreement with Shin Chang Partners and RMS0718 Co., Ltd., pursuant to which the Company agreed to issue and sell to each of the Purchasers 145,454 shares at a purchase price of $5.50 per share. The Company received aggregate gross process of approximately $1.6 million.

As of March 31, 2025, our cash and cash equivalents were $10.4 million. Our current liquidity may not be sufficient to continue to fund operations for the next 12 months. As a result, there is substantial doubt about our ability to continue as a going concern. Additional financing will be needed to fund our ongoing operations and exploration of strategic alternatives and pursue any alternatives that we identify. If we are unable to raise capital, the Company may seek bankruptcy protection and/or cease operations in the near term, which may result in the Company's stockholders receiving no or very little value in respect of their shares of the Company's common stock.

We expect to seek financing through equity offerings. However, it may be difficult to obtain financing given the Company's current condition and uncertainty over its future direction. Therefore, we may be unable to raise capital at all or on favorable terms. Our failure to raise capital or enter into such other arrangements as and when needed would have a negative impact on our financial condition and our ability to continue operations.

**Recent Developments**

***Nasdaq Listing Requirements Deficiency Notices***

As previously disclosed, the Company has received numerous deficiency notices with respect to various Nasdaq listing requirements in the past year. These related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with Nasdaq's minimum bid price rule due to the Company's stock trading below $1.00 for a sustained period of time. The Company effected a one-for-thirty reverse stock split on June 29, 2022 in order to attempt to raise the stock price. On September 13, 2023, the Company received a delinquency notification that the closing bid price of the Company's stock traded below $1.00 for the previous 30 consecutive business days. The Company effected a one-for-five reverse stock split on August 27, 2024 in order to attempt to raise the stock price. On September 13, 2024, the Company received a letter received from Nasdaq noting it met the closing bid price requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with Nasdaq's rule requiring stockholders' equity of at least $2,500,000 based on the Company's balance sheet as of March 31, 2025. We were not in compliance with this requirement based on its September 30, 2024 balance sheet. We believe it is in compliance with this requirement based on its March 31, 2025 balance sheet and expects to be in compliance going forward.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with Nasdaq's corporate governance requirements with respect to Board and committee composition. The Company has received numerous deficiency notifications with respect to these requirements in the past year. Although the Company believes it is currently in compliance, there can be no assurance it will remain in compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with Nasdaq's requirement to hold an annual meeting. On January 11, 2024, Nasdaq notified the Company that it did not comply with listing requirements by not holding an annual meeting in 2023. The Company held its combined 2023 and 2024 annual meeting on June 28, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On April 17, 2024, the Company received a delinquency notification as it had not filed its Annual Report on Form 10-K for the year ended December 31, 2023. The extended deadline for compliance was established by Nasdaq as May 20, 2024, the same deadline for our Form 10-Q for the quarter ended September 30, 2023. The Annual Report on Form 10-K was filed on June 6, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Although the Company filed its Form 10-Q for the quarter ended September 30, 2023 prior to the extended deadline of May 20, 2024, on May 21, 2024, the Company received a delisting determination from the Nasdaq staff as a result of not filing its Annual Report on Form 10-K by the May 20, 2024 deadline and failure to timely file its Form 10-Q for the quarter ended March 31, 2024 (which was subsequently filed on June 17, 2024). The Staff's delisting determination also noted the failure to hold its 2023 annual meeting as another basis of the delisting determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On May 28, 2024, the Company requested an appeal of the delisting determination to Nasdaq's Hearings Panel ("Panel"), and the hearing took place on July 9, 2024. On July 31, 2024, the Company received formal notice that the Panel determined to continue the Company's listing subject to the Company evidencing compliance with all applicable criteria for continued listing on Nasdaq by September 16, 2024. The Company received an additional extension to November 14, 2024 to satisfy the terms of the Panel's decision and to ensure the Company's continued listing on Nasdaq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As the Company did not meet Nasdaq's listing requirements as of September 30, 2024, the Company has requested another extension by the Panel to demonstrate compliance and another extension was granted. We thereafter presented its plan to regain compliance with the Equity Requirement to the Panel, subsequent to which the Panel ultimately granted us extensions through December 17, 2024 to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On December 20, 2024, we received a letter from Nasdaq confirming that, as of December 17, 2024, we meet all requirements for continued listing on Nasdaq as required by the Panel's decision dated November 20, 2024. In accordance with the Panel's decision, on December 17, 2024, we made public disclosure under cover of a Form 8-K, describing the transactions undertaken by us to achieve compliance with Listing Rule 5550(b)(1) and stated affirmatively that as of that date, it believes it has stockholders' equity above the $2.5 million requirement and provided a pro-forma balance sheet as of December 17, 2024. Pursuant to Listing Rule 5815(d)(4)(B), we will be subject to a Mandatory Panel Monitor for a period of one year from the date of Nasdaq's letter. If, within that one-year monitoring period, the Nasdaq Listing Qualifications staff (the "Staff") finds us again out of compliance with the $2.5 million Equity Rule that was the subject of the exception, notwithstanding Rule 5810(c)(2), we will not be permitted to provide the Staff with a plan of compliance with respect to that deficiency and the Staff will not be permitted to grant additional time for us to regain compliance with respect to that deficiency, nor will we be afforded an applicable cure or compliance period pursuant to Rule 5810(c)(3). Instead, the Staff will issue a Delist Determination Letter and we will have an opportunity to request a new hearing with the initial Panel or a newly convened Panel if the initial Panel is unavailable. We will have the opportunity to respond/present to the Panel as provided by Listing Rule 5815(d)(4)(C). Our securities may be at that time delisted from Nasdaq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On May 21, 2025, the Company received a delinquency notification from Nasdaq that it had not filed its Form 10-Q for the period ended March 31, 2025. The Company will be compliant upon filing this Form 10-Q.

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Even if the Company regains compliance with Nasdaq's listing requirements and satisfied the Panel's requirements, there can be no assurance that the Company will remain in compliance with Nasdaq's requirements and will not be delisted.

***Reverse Stock Split***

On August 26, 2024, we filed a Certificate of Amendment to our Amended and Restated Certificate of Incorporation, or the Amendment, with the Secretary of State of the State of Delaware to effect a one-for-five (1-for-5) reverse stock split of our outstanding Common Stock. The Amendment became effective at 5:00 p.m. Eastern Time on August 27, 2024.

The Amendment provided that, at the effective time of the Amendment, every five (5) shares of our issued and outstanding Common Stock were automatically combined into one issued and outstanding share of Common Stock, without any change in par value per share. The reverse stock split effected all shares of our Common Stock outstanding immediately prior to the effective time of the Amendment. As a result of the reverse stock split, proportionate adjustments have been made to the per share exercise price and/or the number of shares issuable upon the exercise or vesting of all stock options, restricted share unit award issued by us and outstanding immediately prior to the effective time of the Amendment, which resulted in a proportionate decrease in the number of shares of our Common Stock reserved for issuance upon exercise or vesting of such stock options, restricted share unit award, and, in the case of stock options, a proportionate increase in the exercise price of all such stock options. In addition, the number of shares reserved for issuance under our equity compensation plans immediately prior to the effective time of the Amendment was reduced proportionately.

No fractional shares were issued as a result of the reverse stock split. Stockholders of record who would otherwise be entitled to receive a fractional share received a full share in lieu thereof. The reverse stock split affected all stockholders proportionately and did not affect any stockholder's percentage ownership of our Common Stock (except to the extent that the reverse stock split results in any stockholder owning only a fractional share).

Our Common Stock began trading on Nasdaq on a split-adjusted basis when the market opened on August 28, 2024. The new CUSIP number for our Common Stock following the reverse stock split is 30205M 309.

**Critical Accounting Estimates**

We prepare our condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, which require our management to make estimates that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the balance sheet dates, as well as the reported amounts of revenues and expenses during the reporting periods. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations would be affected. We base our estimates on our own historical experience and other assumptions that we believe are reasonable after taking account of our circumstances and expectations for the future based on available information. We evaluate these estimates on an ongoing basis.

We consider an accounting estimate to be critical if: (1) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (2) changes in the estimate that are reasonably likely to occur from period to period, or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations.

Management has discussed the development and selection of these critical accounting estimates with the Audit Committee of our Board of Directors. Changes in estimates used in these and other items could have a material impact on our financial statements. This includes estimates where the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change, and the impact of the estimate on financial condition or operating performance is material.

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*Long-Lived Assets*

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of the acquired asset and its eventual disposition are less than its carrying amount.

When conducting the impairment analysis for these long-lived assets, with the primary technique being a discounted cash flow analysis. A discounted cash flow analysis requires us to make various assumptions, estimates and judgements including projected revenue, gross margins, operating costs, growth rates, and discount rates. We believe our assumptions, estimates, and judgements to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

***Business Combinations***

We follow the acquisition method of accounting to record identifiable assets acquired and liabilities assumed recognized in connection with acquired businesses at their estimated fair value as of the date of acquisition. Identifiable intangible assets from business combinations are recognized at their estimated fair values as of the date of acquisition and consist of in-process research and development ("IPR&D"). Determination of the estimated fair value of identifiable intangible assets requires judgment. The fair value of intangible assets is estimated using the Multi-Period Excess Earnings Method (MPEEM) for the acquired IPR&D. The fair value methods are income-based valuation approaches, which require judgment to estimate appropriate discount rates, probability of success rates related to the drug under development, projected revenue, gross margins, operating costs, and growth rates.

The contingent consideration liability, associated with our business combination, is estimated based on the discounted cash flow method to determine the probability of achieving certain milestones. In order to perform the fair value calculations, the following estimates are considered: probability of achieving certain milestones, discount period, and discount rates.

We believe our assumptions, estimates, and judgements to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed.

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**Results of Operations**

**Comparison of the Three Months Ended March 31, 2025 and 2024**

The following table summarizes the results of our operations for the three months ended March 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | | |
| *(dollars in thousands)* | **2025** | **2024** | **Change** | **Change** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue | $— | $500 | (500) | (100)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenue |  | 500 | (500) | (100)% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expense | 808 |  | 808 | 100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense | 2217 | 1336 | 881 | 66% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on early lease termination | (5974) |  | (5974) | (100)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | (2949) | 1336 | (4285) | (321)% |
| Operating income (loss) | 2949 | (836) | 3785 | (453)% |
| Other income, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income | 27 | 4 | 23 | 575% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 5 | 3 | 2 | 67% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on settlement of accounts payables | 191 |  | 191 | 100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent liability | (136) |  | (136) | (100)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expense | (26) |  | (26) | (100)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | 61 | 7 | 54 | 771% |
| Net loss before provision for income taxes | 3010 | (829) | 3839 | (463)% |
| Provision for income taxes |  |  |  | —% |
| Net income (loss) | $3010 | $(829) | $3839 | (463)% |

---

*Revenue*

On February 5, 2024, the Company entered into a patent license agreement to develop cavrotolimod for potential treatment for hepatitis with a private clinical stage biopharmaceutical company. Under the terms of the agreement, this biopharmaceutical company received an exclusive license in the field of hepatitis to all of the Company's relevant patents. A total of $500 was paid to the Company after the execution of this agreement.

*Research and development expense*

The following table summarizes our research and development expenses incurred during the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | | |
| *(dollars in thousands)* | **2025** | **2024** | **Change** | **Change** |
| Employee-related expense | $209 | $— | $209 | 100% |
| Clinical development programs expense | 599 |  | 599 | 100% |
| &nbsp;&nbsp;&nbsp;Total research and development expense | $808 | $— | $808 | 100% |

---

Research and development expense was $0.8 million for the three months ended March 31, 2025, reflecting an increase of $0.8 million, or 100% from research and development expense of $0 for three months ended March 31, 2024. The Company

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incurred research and development expense in 2025 after the acquisition of GPCR USA. In 2022, the Company suspended its clinical, preclinical, and discovery program activities and reduced headcount as it began exploring strategic alternatives in April 2023 and stopped recording any research and development expenses until the Acquisition in the first quarter of 2025.

*General and administrative expense*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | | |
| *(dollars in thousands)* | **2025** | **2024** | **Change** | **Change** |
| General and administrative expense | $2217 | $1336 | 881 | 66% |
| Full time employees | 8 | 5 | 3 |  |

---

General and administrative expense was $2.2 million for the three months ended March 31, 2025, representing an increase of $0.9 million or 66%, from $1.3 million for the three months ended March 31, 2024. The increase for the three months ended March 31, 2025 was due to the additional expenses incurred from the acquisition of GPCR USA and increased professional services compared to the same prior year quarter.

*Gain on early lease termination*

Due to the early termination of the Chicago Lease as of January 31, 2025, the Company recognized a $6 million gain resulting from the reversal of the remaining liability related to this lease.

*Other income*

The Company recognized a gain from the reversal of liability related to registration rights delay amounts owed to DGP they agreed to waive the $191 penalty amount owed.

**Liquidity and Capital Resources**

Since our inception, we have incurred significant operating losses. We generated limited revenue from our collaboration agreements, which have since been terminated. We have funded our operations to date with proceeds received from equity financings and payments received in connection with collaboration agreements, which have since been terminated. Currently we are exploring strategic alternatives and generating limited revenue. As of March 31, 2025, our cash and cash equivalents were $10.4 million.

We incurred net income of approximately $3.0 million for the three months ended March 31, 2025 and net loss of $0.8 million for the three months ended March 31, 2024. We expect to incur significant expenses and negative cash flows for the foreseeable future.

Our current liquidity is not sufficient to continue to fund existing obligations and operations. As a result, there is substantial doubt about our ability to continue as a going concern. Additional financing will be needed to fund our ongoing operations and exploration of strategic alternatives and pursue any alternatives that we identify. We may need to seek bankruptcy protection and/or cease operations in the near term, which may result in our stockholders receiving no or very little value in respect of their shares of our common stock.

See "Funding Requirements" below for additional information on our future capital needs.

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**<u>[Table of](#i28d7a96df527407a965df6fe789d1095_7)[Contents](#i28d7a96df527407a965df6fe789d1095_7)</u>**

***Cash Flows***

The following table shows a summary of our cash flows for the three months ended March 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| *(in thousands)* | **2025** | **2024** |
|  | (unaudited) | (unaudited) |
| Net cash used in operating activities | $(1598) | $(450) |
| Net cash used in investing activities | (2090) |  |
| Net cash provided by financing activities | 1600 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net (decrease) in cash, cash equivalents, and restricted cash | $(2088) | $(450) |

---

*Operating activities*

Net cash used in operating activities was $1.6 million and $0.5 million for the three months ended March 31, 2025 and 2024, respectively. The increase in cash used in operating activities for the three months ended March 31, 2025 of $1.1 million was due to the increase of operating activities and higher headcount from the GPCR USA acquisition.

*Investing activities*

Net cash used in investing activities was $2.1 million and $0.0 million for the three months ended March 31, 2025 and 2024, respectively. The increase in cash used by investing activities of $2.1 million was due to purchase of GPCR USA.

*Financing activities*

Net cash provided by financing activities was $1.6 million and $0.0 million for three months ended March 31, 2025 and 2024, respectively. The increase of $1.6 million is due to the funds received from the common stock purchase agreements in February.

***Funding Requirements***

Our existing cash and cash equivalents may not be sufficient to enable us to fund our existing obligations and ongoing operating expenses for the near term. Our future capital requirements are difficult to forecast and will depend on many factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the results of our exploration of strategic alternatives, including any potential transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the results of any future or pending litigation against the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the extent to which we encounter increased costs as a result of global and macroeconomic conditions, including rising inflation and interest rates, supply chain disruptions, fluctuating exchange rates, and increases in commodity, energy and fuel prices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unknown legal, administrative, regulatory, accounting, and information technology costs as well as additional costs associated with operating as a public company.

Until such time, if ever, as we can generate substantial revenue, we expect to finance our cash needs primarily through equity offerings. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders may be materially diluted, and the terms of such securities could include liquidation or other preferences that adversely affect the rights of our stockholders. Debt financing and preferred equity financing, if available, may involve agreements that include restrictive covenants that limit our ability to take specified actions, such as incurring additional debt, making capital expenditures or declaring dividends. Further, the global financial markets have experienced significant disruptions over the past couple of

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**<u>[Table of](#i28d7a96df527407a965df6fe789d1095_7)[Contents](#i28d7a96df527407a965df6fe789d1095_7)</u>**

years due to the COVID-19 pandemic, the ongoing conflict between Russia and Ukraine, and worsening global macroeconomic conditions, including actions taken by central banks to counter inflation, volatility in the capital markets and related market uncertainty, may impact our ability to obtain additional financing when needed on favorable terms or at all. Any further disruption or slowdown in the global financial markets and economy may negatively affect our ability to raise funding through equity or debt financings on attractive terms or at all, which could in the future negatively affect our operations.

***Going Concern***

In accordance with Accounting Standards Codification 205-40, *Going Concern*, we have evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the unaudited condensed consolidated financial statements are issued. In the absence of a significant source of recurring revenue, our continued viability is dependent on our ability to continue to raise additional capital to finance our operations. As discussed above, there are substantial uncertainties about our ability to raise such financing.

**Contractual Obligations and Commitments**

***Chicago Lease and Redwood City Lease***

Refer to Note 5 - Leases to the Notes to unaudited condensed consolidated financial statements included herein.

There have been no material changes to our contractual obligations and commitments from those described in our Annual Report, other than the termination of the Chicago Lease as mentioned in Note 5.

**Item 3. Quantitative and Qualitative Disclosures about Market Risk.**

As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and in Item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore are not required to provide the information requested by this Item.

**Item 4. Controls and Procedures.**

***Limitations on Effectiveness of Controls***

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

***Evaluation of Disclosure Controls and Procedures***

We maintain "disclosure controls and procedures" as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed in our periodic and current reports that we file with the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Our management, with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2025. Based on the evaluation of our disclosure controls and procedures as of March 31, 2025, our principal executive officer and principal

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financial officer concluded that, as of such date, our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weakness described below.

***Material Weakness in Internal Control Over Financial Reporting***

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

Management identified material weaknesses in the Company's internal control over financial reporting related to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Management's review of the accounting treatment of non-routine activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The Company failed to design and implement controls around all accounting and information technology processes and procedures.

These matters have been reviewed with our Audit Committee.

***Remediation Plan***

We are evaluating the material weakness and are developing a plan of remediation to strengthen the effectiveness of the design and operation of our internal control environment. The remediation plan will include enhancing our review procedures within our accounting department, implementing additional review procedures with respect to accumulation and evaluation of information that is known or knowable to the Company at the time, and applying that information to the applicable accounting guidance. Subject to our ability to obtain additional financing and the results of our review of strategic alternatives, we will also consider whether additional personnel are necessary.

***Changes in Internal Control over Financial Reporting***

Other than described above, there were no changes in our internal control over financial reporting during the fiscal quarter ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**<u>[Table of](#i28d7a96df527407a965df6fe789d1095_7)[Contents](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**PART II – OTHER INFORMATION**

**Item 1. Legal Proceedings.** 

The Company and certain of its current and former officers and directors were defendants in Colwell v. Exicure, Inc. et al., a securities class action in the United States District Court for the Northern District of Illinois (Case No. 1:21-cv-06637) (the "Securities Class Action"). On May 26, 2023, plaintiffs filed a second amended complaint generally alleging that the defendants made false statements about the results of experiments concerning the drug XCUR-FXN and asserting claims for violations of federal securities laws under Section 10(b) and Section 20(a) of the Exchange Act and Rule 10b-5 thereunder. On October 8, 2024, the court granted preliminary approval of the settlement in the Securities Class Action and set a schedule for final approval proceedings, including a final approval hearing on January 13, 2025. On January 13, 2025, the court entered final judgment approving a settlement of this litigation, which settlement included a $5.625 million payment.

The settlement described above will be fully covered by insurance. However, the settlement includes a reservation of rights by the insurers against the Company for the unsatisfied portion of its self insured retainer. As a result, the Company recorded an accrual as of September 30, 2024 for the amount of the unsatisfied retainer of approximately $1.1 million needed to bridge the $2.5 million retainer that the Company is liable for under its self insured retention .

Three related stockholder derivative lawsuits were filed against certain of the Company's current and former officers and directors and against the Company as a nominal defendant between March and April 2022 in the United States District Court for the Northern District of Illinois (Puri v. Giljohann, et al. (Case No. 1:22-cv-01083); Sim v. Giljohann, et al. (Case No. 1:22-cv-01217)); and the United States District Court for the District of Delaware (Stourbridge Investments LLC v. Exicure, Inc. et al., Case No. 1:22-cv-00526)) (collectively, the "Derivative Complaints").

On March 18, 2022, James McNabb, through counsel, sent a written demand to the Company (the "Demand Letter") demanding that the Board investigate certain allegations and commence proceedings on the Company's behalf against certain of the Company's officers and directors for alleged breaches of fiduciary duties and corporate waste. The Derivative Complaints and the Demand Letter are currently stayed, and the Company is engaged in settlement discussions with plaintiffs' counsel regarding these matters.

On October 3, 2023, a former employee filed a complaint against the Company and its executives related to the former employee's separation from the Company. The parties proceeded with paper discovery and this matter did not settle at an in-person settlement conference on July 17, 2024. As a result, we are in the discovery phase of this litigation. The parties exchanged discovery and a status conference was held on February 11, 2025, wherein opposing counsel asserted alleged various discovery deficiencies. The parties are working through these alleged discovery deficiencies and anticipate deposing the plaintiff as well as witnesses on behalf of the Company and the individual defendants themselves in the coming months.

*General*

We may also be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

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**<u>[Table of](#i28d7a96df527407a965df6fe789d1095_7)[Contents](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**Item 1A. Risk Factors.**

Not applicable to smaller reporting companies

**Item 6. Exhibits**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |
| **Exhibit**<br>**No.** |<br>**Exhibit Description**  | **Form** | **Exhibit No.** | **Filing Date** | **File No.** |
| 3.1 | <u>[Amended and Restated Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware on November 15, 2017.](https://www.sec.gov/Archives/edgar/data/1698530/000169853021000031/exicureex33amendedandresta.htm)</u> | 10-K | 3.3 | 3/11/21 | 001-39011 |
| 3.2 | <u>[Certificate of Amendment to Amended and Restated Certificate of Incorporation of Exicure, Inc., effective June 29, 2022.](http://www.sec.gov/Archives/edgar/data/0001698530/000169853022000042/ex31-certificateofamendmen.htm)</u> | 8-K | 3.1 | &nbsp;&nbsp;&nbsp;06/29/22 | 001-39011 |
| 3.3 | <u>[Amended and Restated Bylaws, as currently in effect.](http://www.sec.gov/Archives/edgar/data/1698530/000119312517301064/d461080dex34.htm)</u> | 8-K | 3.4 | 10/02/17 | 000-55764 |
| 3.4 | <u>[Certificate of Amendment to Amended and Restated Certificate of Incorporation of Exicure, Inc., effective August 27, 2024](https://www.sec.gov/Archives/edgar/data/1698530/000169853024000098/certificateofamendmenttoch.htm)</u> | 8-K | 3.1 | 8/26/24 | 001-39011 |
| 10.1\* | <u>[Share Purchase Agreement, dated January 19, 2025, between the Company and GPCR](exhibit101sharepurchaseagmt.htm)</u> | 8-K | N/A | 1/19/25 | 001-39011 |
| 10.2\* | <u>[License and Collaboration Agreement, dated January 19, 2025, between the Company and GPCR](exhibit102liccollabagmt.htm)</u> | 8-K | N/A | 1/19/25 | 001-39011 |
| 10.3 | <u>[Common Stock Purchase Agreement, dated as of February 14, 2025, by and among Exicure, Inc. and Shin Chang Partners and RMS0718 Co., Ltd.](https://www.sec.gov/Archives/edgar/data/1698530/000169853025000009/exhibit101_cspa21425.htm)</u> | 8-K | 10.1 | 2/14/25 | 001-39011 |
| 10.4 | <u>[Registration Rights Agreement, dated as of February 14, 2025, by and among Exicure, Inc. and Shin Chang Partners and RMS0718 Co., Ltd.](https://www.sec.gov/Archives/edgar/data/1698530/000169853025000009/exhibit102_rra21425.htm)</u> | 8-K | 10.2 | 2/14/25 | 001-39011 |
| 10.5\* | <u>[Consulting Agreement by and between the Company and Alta Companies Ltd., dated February 27, 2025](exhibit105altaagmt.htm)</u> |  |  |  |  |
| 31.1\* | <u>[Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](exicureexhibit311-33125.htm)</u> |  |  |  |  |
| 31.2\* | <u>[Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](exicureexhibit312-33125.htm)</u> |  |  |  |  |
| 32.1\*\* | <u>[Certifications of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](exicureexhibit321-33125.htm)</u> |  |  |  |  |

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**<u>[Table of](#i28d7a96df527407a965df6fe789d1095_7)[Contents](#i28d7a96df527407a965df6fe789d1095_7)</u>**

---

| | |
|:---|:---|
| 101.INS\* | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\* Filed herewith.

\*\* The certification attached as Exhibit 32.1 that accompanies this Quarterly Report on Form 10-Q is not deemed filed with the SEC and is not to be incorporated by reference into any filing of Exicure, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of such Form 10-Q), irrespective of any general incorporation language contained in such filing.

\*\*\* Certain exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby undertakes to furnish supplemental copies of any of the omitted exhibits and schedules upon request by the SEC; provided, however, that the Company may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any exhibits or schedules so furnished.

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**<u>[Table of](#i28d7a96df527407a965df6fe789d1095_7)[Contents](#i28d7a96df527407a965df6fe789d1095_7)</u>**

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: June 27, 2025

---

| | |
|:---|:---|
| **EXICURE, INC.** | **EXICURE, INC.** |
| By: | /s/ Andy Yoo |
|  | Andy Yoo |
|  | Chief Executive Officer |
| By: | /s/ Seung Ik Baik |
|  | Seung Ik Baik |
|  | Chief Financial Officer |
| By: | /s/ Joshua Miller |
|  | Joshua Miller |
|  | Chief Accounting Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

***Executed Version***

**SHARE PURCHASE AGREEMENT**

between

**GPCR THERAPEUTICS, INC.**

and

**EXICURE, INC.**

dated as of January 19, 2025

------

**TABLE OF CONTENTS**

[ARTICLE I PURCHASE AND SALE](#i6bcd95a03d094850a535a3e4a5995fdd_1182)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1182)[5](#i6bcd95a03d094850a535a3e4a5995fdd_1182)

**Section 1.01 Purchase and Sale**&nbsp;&nbsp;&nbsp;&nbsp;5

**Section 1.02 Purchase Price**&nbsp;&nbsp;&nbsp;&nbsp;5

**Section 1.03 Withholding Taxes**&nbsp;&nbsp;&nbsp;&nbsp;5

[ARTICLE II CLOSING](#i6bcd95a03d094850a535a3e4a5995fdd_1182)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1182)[6](#i6bcd95a03d094850a535a3e4a5995fdd_1182)

**Section 2.01 Closing**&nbsp;&nbsp;&nbsp;&nbsp;6

**Section 2.02 Seller Closing Deliverables**&nbsp;&nbsp;&nbsp;&nbsp;6

**Section 2.03 Buyer's Deliveries**&nbsp;&nbsp;&nbsp;&nbsp;6

[ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER](#i6bcd95a03d094850a535a3e4a5995fdd_1185)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1185)[6](#i6bcd95a03d094850a535a3e4a5995fdd_1185)

**Section 3.01 Organization and Authority of Seller**&nbsp;&nbsp;&nbsp;&nbsp;7

**Section 3.02 Organization, Authority, and Qualification of the Company**&nbsp;&nbsp;&nbsp;&nbsp;7

**[Section 3.03 Capitalization](#i6bcd95a03d094850a535a3e4a5995fdd_1188)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1188)[7](#i6bcd95a03d094850a535a3e4a5995fdd_1188)**

**Section 3.04 No Subsidiaries**&nbsp;&nbsp;&nbsp;&nbsp;8

**Section 3.05 No Conflicts or Consents**&nbsp;&nbsp;&nbsp;&nbsp;8

**Section 3.06 Financial Statements**&nbsp;&nbsp;&nbsp;&nbsp;8

**Section 3.07 [Undisclosed Liabilities**&nbsp;&nbsp;&nbsp;&nbsp;8

**Section 3.08 Absence of Certain Changes, Events, and Conditions**&nbsp;&nbsp;&nbsp;&nbsp;9

**[Section 3.09 Material Contracts](#i6bcd95a03d094850a535a3e4a5995fdd_1188)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1188)[9](#i6bcd95a03d094850a535a3e4a5995fdd_1188)**

**Section 3.11 Intellectual Property**&nbsp;&nbsp;&nbsp;&nbsp;9

**Section 3.12 [Insurance**&nbsp;&nbsp;&nbsp;&nbsp;10

**Section 3.13 Legal Proceedings; Governmental Orders**&nbsp;&nbsp;&nbsp;&nbsp;10

**Section 3.14 Compliance with Laws; Permits**&nbsp;&nbsp;&nbsp;&nbsp;10

**Section 3.15 Environmental Matters**&nbsp;&nbsp;&nbsp;&nbsp;11

**Section 3.16 Employee Benefit Matters**&nbsp;&nbsp;&nbsp;&nbsp;11

**Section 3.17 Employment Matters**&nbsp;&nbsp;&nbsp;&nbsp;13

**Section 3.18 Taxes**&nbsp;&nbsp;&nbsp;&nbsp;13

**Section 3.19 Brokers**&nbsp;&nbsp;&nbsp;&nbsp;14

**Section 3.20 No Other Representations and Warranties**&nbsp;&nbsp;&nbsp;&nbsp;14

[ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER](#i6bcd95a03d094850a535a3e4a5995fdd_1194)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1194)[14](#i6bcd95a03d094850a535a3e4a5995fdd_1194)

------

**Section 4.01 Organization and Authority of Buyer**&nbsp;&nbsp;&nbsp;&nbsp;14

**Section 4.02 No Conflicts or Consents**&nbsp;&nbsp;&nbsp;&nbsp;15

**Section 4.03 Investment Purpose**&nbsp;&nbsp;&nbsp;&nbsp;15

**Section 4.04 Brokers**&nbsp;&nbsp;&nbsp;&nbsp;15

[ARTICLE V COVENANTS](#i6bcd95a03d094850a535a3e4a5995fdd_1194)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1194)[16](#i6bcd95a03d094850a535a3e4a5995fdd_1194)

**[Section 5.01 Employee Benefit Plans](#i6bcd95a03d094850a535a3e4a5995fdd_1194)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1194)[16](#i6bcd95a03d094850a535a3e4a5995fdd_1194)**

**[Section 5.02 Director and Officer Indemnification Liability](#i6bcd95a03d094850a535a3e4a5995fdd_1194)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1194)[17](#i6bcd95a03d094850a535a3e4a5995fdd_1194)**

**Section 5.03 Confidentiality**&nbsp;&nbsp;&nbsp;&nbsp;17

**Section 5.04 Public Announcements**&nbsp;&nbsp;&nbsp;&nbsp;17

**Section 5.05 Further Assurances**&nbsp;&nbsp;&nbsp;&nbsp;17

**Section 5.06 Transfer Taxes**&nbsp;&nbsp;&nbsp;&nbsp;18

[ARTICLE VI INDEMNIFICATION](#i6bcd95a03d094850a535a3e4a5995fdd_1194)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1194)[18](#i6bcd95a03d094850a535a3e4a5995fdd_1194)

**Section 6.01 Indemnification by Seller**&nbsp;&nbsp;&nbsp;&nbsp;18

**Section 6.02 Indemnification by Buyer**&nbsp;&nbsp;&nbsp;&nbsp;18

**Section 6.03 Certain Limitations**&nbsp;&nbsp;&nbsp;&nbsp;18

**Section 6.04 Indemnification Procedures**&nbsp;&nbsp;&nbsp;&nbsp;19

**Section 6.05 Survival**&nbsp;&nbsp;&nbsp;&nbsp;19

**Section 6.06 Tax Treatment of Indemnification Payments**&nbsp;&nbsp;&nbsp;&nbsp;20

**Section 6.07 Exclusive Remedies**&nbsp;&nbsp;&nbsp;&nbsp;20

[ARTICLE VII MISCELLANEOUS](#i6bcd95a03d094850a535a3e4a5995fdd_1197)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1197)[20](#i6bcd95a03d094850a535a3e4a5995fdd_1197)

**Section 7.01 Expenses**&nbsp;&nbsp;&nbsp;&nbsp;20

**Section 7.02 Notices**&nbsp;&nbsp;&nbsp;&nbsp;20

**Section 7.03 Interpretation; Headings**&nbsp;&nbsp;&nbsp;&nbsp;21

**Section 7.04 Severability**&nbsp;&nbsp;&nbsp;&nbsp;21

**Section 7.05 Entire Agreement**&nbsp;&nbsp;&nbsp;&nbsp;21

**Section 7.06 Successors and Assigns**&nbsp;&nbsp;&nbsp;&nbsp;21

**Section 7.07 Amendment and Modification; Waiver**&nbsp;&nbsp;&nbsp;&nbsp;21

**[Section 7.08 Governing Law; Submission to Jurisdiction\[; Waiver of Jury Trial\]](#i6bcd95a03d094850a535a3e4a5995fdd_1200)[&nbsp;&nbsp;&nbsp;&nbsp;](#i6bcd95a03d094850a535a3e4a5995fdd_1200)[21](#i6bcd95a03d094850a535a3e4a5995fdd_1200)**

**Section 7.09 Counterparts**&nbsp;&nbsp;&nbsp;&nbsp;22

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**SHARE PURCHASE AGREEMENT**

This Share Purchase Agreement (this "**Agreement**"), dated as of January 19, 2025, is entered into between GPCR THERAPEUTICS, INC., a Korean corporation ("**Seller**"), and EXICURE, INC., an Illinois corporation ("**Buyer**"). Capitalized terms used in this Agreement have the meanings given to such terms herein, as such definitions are identified by the cross-references set forth in **Exhibit A** attached hereto.

**RECITALS**

**WHEREAS**, Seller owns all of the issued and outstanding shares, with $0.10 par value (the "**Shares**"), in GPCR THERAPEUTICS USA, INC., a California corporation (the "**Company**"); and

**WHEREAS**, Seller wishes to sell to Buyer, and Buyer wishes to purchase from Seller, the Shares, subject to the terms and conditions set forth herein;

**NOW, THEREFORE**, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE I PURCHASE AND SALE**

**Section 1.01&nbsp;&nbsp;&nbsp;&nbsp;Purchase and Sale.** Subject to the terms and conditions set forth herein, at the Closing (as defined in Section 2.01Section 2.01), Seller shall sell to Buyer, and Buyer shall purchase from Seller, the Shares, free and clear of any lien, pledge, mortgage, deed of trust, charge, security interest, assignment, claim, easement, encroachment, or other similar encumbrance (each, an "**Encumbrance**"), for the consideration specified in Section 1.02.

**Section 1.02&nbsp;&nbsp;&nbsp;&nbsp;Purchase Price; Payment.** The aggregate purchase price for the Shares shall be $1,635,176.66 (the "**Purchase Price**"). Buyer shall pay the Purchase Price to Seller in a single installment in cash by wire transfer of immediately available funds in accordance with the wire transfer instructions set forth in <u>Section 1.02</u> of the Disclosure Schedules in the following payment schedule: the lump sum payment of the Purchase Price shall be payable and due within two (2) business days from the execution of this Agreement. The term "**Disclosure Schedules**" means the disclosure schedules, attached hereto and made a part hereof, delivered by Seller concurrently with the execution and delivery of this Agreement.

**The Purchase Price is determined based on the Company's financial statements as at the end of December, 2024 that provided by the Seller, and any future due diligence adjustments will be agreed between the Seller and Buyer.**

**Section 1.03&nbsp;&nbsp;&nbsp;&nbsp;Withholding Taxes.** Buyer shall be entitled to deduct and withhold from amounts otherwise payable pursuant to this Agreement such amounts as are required to be deducted and withheld under applicable law. Buyer shall provide Seller with written notice of its intent to withhold at least ten (10) days prior to the Closing with a written explanation substantiating the requirement to deduct or withhold, and the parties shall use commercially

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reasonable efforts to cooperate to mitigate or eliminate any such withholding to the maximum extent permitted by law. Assuming Seller delivers the certificate described in section 2.02.

Buyer acknowledges and agrees that no withholding is required as of the date hereof. To the extent that amounts are so withheld and paid over to the appropriate tax authority by the Buyer, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the person in respect of which such deduction and withholding was made.

**ARTICLE II CLOSING**

**Section 2.01&nbsp;&nbsp;&nbsp;&nbsp;Closing.** The closing of the transactions contemplated by this Agreement (the "**Closing**") shall take place at a mutually agreed date (the "**Closing Date**"), which shall not be later than two (2) days from the execution of this Agreement, remotely by exchange of documents and signatures (or their electronic counterparts). The consummation of the transactions contemplated by this Agreement shall be deemed to occur at 12:01 a.m. Pacific Time Zone on the Closing Date.

**Section 2.02&nbsp;&nbsp;&nbsp;&nbsp;Seller Closing Deliverables.** At the Closing, Seller shall deliver to Buyer the following:

Seller:

Share certificates evidencing the Shares, free and clear of all Encumbrances, duly endorsed in blank or accompanied by stock powers or other instruments of transfer duly executed in blank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;A certificate of the Secretary (or other officer) of Seller certifying: (i) that attached thereto are true and complete copies of all resolutions of the board of directors of Seller authorizing the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby, and that such resolutions are in full force and effect; (ii) the names, titles, and signatures of the officers of Seller authorized to sign this Agreement; and (iii) that attached thereto are true and complete copies of the governing documents of the Company, including any amendments or restatements thereof, and that such governing documents are in full force and effect.

**Section 2.03&nbsp;&nbsp;&nbsp;&nbsp;Buyer's Deliveries.** At the Closing, Buyer shall deliver the following to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Purchase Price pursuant to Section 1.02.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;A certificate of the secretary (or other officer) of Buyer certifying: (i) that attached thereto are true and complete copies of all resolutions of the board of directors of Buyer authorizing the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby, and that such resolutions are in full force and effect; and (ii) the names, titles, and signatures of the officers of Buyer authorized to sign this Agreement.

**ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER**

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Except as set forth in the Disclosure Schedules, Seller represents and warrants to Buyer that the statements contained in this Article III are true and correct as of the date hereof. For purposes of this ARTICLE III, "**Seller's knowledge**," "**knowledge of Seller**," and any similar phrases shall mean the actual knowledge of Seller's CEO.

**Section 3.01&nbsp;&nbsp;&nbsp;&nbsp;Organization and Authority of Seller.** Seller is a corporation duly organized, validly existing, and in good standing under the Laws (as defined in Section 3.05) of the Republic of Korea. Seller has all necessary corporate power and authority to enter into this Agreement, to carry out its obligations hereunder, and to consummate the transactions contemplated hereby. The execution and delivery by Seller of this Agreement, the performance by Seller of its obligations hereunder, and the consummation by Seller of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of Seller. This Agreement constitutes legal, valid, and binding obligations of Seller enforceable against Seller in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

**Section 3.02&nbsp;&nbsp;&nbsp;&nbsp;Organization, Authority, and Qualification of the Company.** The Company is a corporation duly organized, validly existing, and in good standing under the Laws of the state of California and has all necessary corporate power and authority to own, operate, or lease the properties and assets now owned, operated, or leased by it and to carry on its business as it is currently conducted. The Company is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business as currently conducted makes such licensing or qualification necessary, except where the failure to be so licensed, qualified, or in good standing would not have a Material Adverse Effect (as defined in Section 3.05). All corporate actions taken by the Company in connection with this Agreement have been duly authorized.

**Section 3.03&nbsp;&nbsp;&nbsp;&nbsp;Capitalization.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The authorized shares of the Company consist of one class of shares comprised of 10,000,000 common shares, with $0.10 par value, of which 6,000,000 shares are issued and outstanding and constitute the Shares. All of the Shares have been duly authorized, are validly issued, fully paid and nonassessable, and are owned of record and beneficially by Seller, free and clear of all Encumbrances. The Shares constitute all of the issued and outstanding shares in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;There are no outstanding or authorized options, warrants, convertible securities, stock appreciation, phantom stock, profit participation, or other rights, agreements, or commitments relating to the Shares or obligating Seller or the Company to issue or sell any shares, or any other interest, in the Company. There are no voting trusts, shareholder agreements, proxies, or other agreements in effect with respect to the voting or transfer of any of the Shares.

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**Section 3.04 No Subsidiaries.** The Company does not own, or have the right to acquire, an ownership interest in any other corporation, partnership, joint venture, limited liability company, unincorporated organization, trust, association, or other entity.

**Section 3.05&nbsp;&nbsp;&nbsp;&nbsp;No Conflicts or Consents.** The execution, delivery, and performance by Seller of this Agreement, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict with any provision of the certificate of incorporation or by- laws of Seller or the Company; (b) violate or conflict with any provision of any Law or Governmental Order applicable to Seller or the Company; (c) require the consent, notice, or other action by any Person under, violate or conflict with, or result in the acceleration of any Material Contract (as defined in Section 3.09(a)); or (d) require any consent, permit, Governmental Order, filing, or notice from, with, or to any Governmental Authority; except, in the cases of clauses (b) and (c), where the violation, conflict, acceleration, or failure to obtain consent or give notice would not have a Material Adverse Effect and, in the case of clause (d), where such consent, permit, Governmental Order, filing, or notice which, in the aggregate, would not have a Material Adverse Effect. For purposes of this Agreement: (i) "**Law**" means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, or other requirement or rule of law of any Governmental Authority; (ii) "**Governmental Order**" means any order, writ, judgment, injunction, decree, stipulation, determination, or award entered by or with any Governmental Authority; (iii) "**Governmental Authority**" means any federal, state, local, or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any arbitrator, court, or tribunal of competent jurisdiction; (iv) "**Person**" means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association, or other entity; and (v) "**Material Adverse Effect**" means any event, occurrence, fact, condition, or change that is materially adverse to the business, results of operations, financial condition, or assets of the Company, taken as a whole.

**Section 3.06&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements.** Copies of the Company's audited financial statements consisting of the balance sheet of the Company as on December 31 in 2023 and the related statements of income and retained earnings, shareholders' equity, and cash flow for the years then ended (the "**Financial Statements**") have been previously delivered to Buyer by Seller for purposes of this Agreement. The Financial Statements have been prepared in accordance with generally accepted accounting principles in effect in the United States from time to time ("**GAAP**"), applied on a consistent basis throughout the period involved. The Financial Statements fairly present in all material respects the financial condition of the Company as of the respective dates they were prepared and the results of the operations of the Company for the periods indicated. For purposes of this Agreement, the balance sheet of the Company as of September 30, 2024 is referred to herein as the "**Balance Sheet**" and the date thereof as the "**Balance Sheet Date**."

**Section 3.07&nbsp;&nbsp;&nbsp;&nbsp;Undisclosed Liabilities.** To Seller's knowledge, the Company has no liabilities, obligations, or commitments of a type required to be reflected on a balance sheet prepared in accordance with GAAP, except: (a) those which are adequately reflected or reserved against in the Balance Sheet as of the Balance Sheet Date; and (b) those which have been incurred in the ordinary course of business since the Balance Sheet Date and which are not material in amount.

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**Section 3.08&nbsp;&nbsp;&nbsp;&nbsp;Absence of Certain Changes, Events, and Conditions.** Except as expressly contemplated by this Agreement, from the Balance Sheet Date until the date of this Agreement, the Company has operated in the ordinary course of business in all material respects and there has not been: (a) an MAE; or (b) any event, occurrence, fact, condition, or change that is materially adverse to the ability of Seller to consummate the transactions contemplated hereby.

**Section 3.09&nbsp;&nbsp;&nbsp;&nbsp;Material Contracts.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 3.09(a)</u> of the Disclosure Schedules lists each of the following contracts and other agreements of the Company of the Disclosure Schedules, collectively, the "**Material Contracts**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;each agreement of the Company involving aggregate consideration in excess of $4,000.00 or requiring performance by any party more than one year from the date hereof, which, in each case, cannot be cancelled by the Company without penalty or without more than 180 days' notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;all agreements that relate to the sale of any of the Company's assets, other than in the ordinary course of business, for consideration in excess of

$10,000.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;all agreements that relate to the acquisition of any business, a material amount of stock or assets of any other Person, or any real property (whether by merger, sale of stock, sale of assets, or otherwise), in each case involving amounts in excess of $50,000.00; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;except for agreements relating to trade payables, all agreements relating to indebtedness (including, without limitation, guarantees) of the Company, in each case having an outstanding principal amount in excess of

$4,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To Seller's knowledge, the Company is not in breach of, or default under, any Material Contract, except for such breaches or defaults that would not have a Material Adverse Effect.

**Section 3.10&nbsp;&nbsp;&nbsp;&nbsp;Intellectual Property.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;"**Intellectual Property**" means any and all of the following arising pursuant to the Laws of any jurisdiction throughout the world: (i) patents and patent applications; (ii) trademarks, service marks, trade names, and other similar indicia of source or origin, all registrations and applications for registration thereof, and the goodwill connected with the use of and symbolized by the foregoing; (iii) copyrights and all registrations and applications for registration thereof; (iv) trade secrets and know-how;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) internet domain name registrations; and (vi) other intellectual property and related proprietary rights.

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Docusign Envelope ID: D5BAEBB4-1AE2-4469-BCE3-566404A186CB

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>The</u> Company or Seller owns or has the right to use all Intellectual Property necessary for the conduct of the Company's business as currently conducted (the "**Company Intellectual Property**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Except as would not have a Material Adverse Effect, to Seller's knowledge: (i) the conduct of the Company's business as currently conducted does not infringe, misappropriate, or otherwise violate the Intellectual Property of any Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no Person is infringing, misappropriating, or otherwise violating any Company Intellectual Property.

**Section 3.11&nbsp;&nbsp;&nbsp;&nbsp;Insurance.** <u>Section 3.11</u> of the Disclosure Schedules sets forth a list, as of the date hereof, of all material insurance policies maintained by the Company or with respect to which the Company is a named insured or otherwise the beneficiary of coverage (collectively, the "**Insurance Policies**"). Such Insurance Policies are in full force and effect on the date of this Agreement and all premiums due on such Insurance Policies have been paid, except as would not have a Material Adverse Effect.

**Section 3.12&nbsp;&nbsp;&nbsp;&nbsp;Legal Proceedings; Governmental Orders.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To Seller's knowledge, there are no claims, actions, suits, investigations, or other legal proceedings (collectively, "**Actions**") pending against or by the Company directly and materially affecting any of its properties or assets (or by or against Seller or any Affiliate thereof and relating to the Company), which if determined adversely to the Company (or to Seller or any Affiliate thereof) would result in a Material Adverse Effect. For purposes of this Agreement: (i) "**Affiliate**" of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person; and (ii) the term "**control**" (including the terms "controlled by" and "under common control with") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To Seller's knowledge, there are no outstanding Governmental Orders against, relating to, or affecting the Company or any of its properties or assets which would have a Material Adverse Effect.

**Section 3.13&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Laws; Permits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To Seller's knowledge, the Company is in compliance with all Laws applicable and material to it or its business, properties, or assets, except where the failure to be in compliance would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To Seller's knowledge, all permits, licenses, franchises, approvals, authorizations, and consents required to be obtained from Governmental Authorities (collectively, "**Permits**") for the Company to conduct its business have been obtained and are valid and in full force and effect, except where the failure to obtain such Permits would not have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;None of the representations and warranties contained in this Section 3.13 shall be deemed to relate to environmental matters (which are governed by Section 3.13(c)), employee benefits matters (which are governed by Section 3.15), employment matters (which are governed by Section 3.15(f)), or tax matters (which are governed by Section 3.16(c)).

**Section 3.14&nbsp;&nbsp;&nbsp;&nbsp;Environmental Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The terms: (i) "**Environmental Laws**" means all Laws, now or hereafter in effect, in each case as amended or supplemented from time to time, relating to the regulation and protection of human health, safety, the environment, and natural resources, including any federal, state, or local transfer of ownership notification or approval statutes; and (ii) "**Hazardous Substances**" means: (A) "hazardous materials," "hazardous wastes," "hazardous substances," "industrial wastes," or "toxic pollutants," as such terms are defined under any Environmental Laws; (B) any other hazardous or radioactive substance, contaminant, or waste; and (C) any other substance with respect to which any Environmental Law or Governmental Authority requires environmental investigation, regulation, monitoring, or remediation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To Seller's knowledge, the Company is in compliance with all Environmental Laws and neither the Company nor Seller has received notice from any Person that the Company, its business or assets, or any Real Property currently owned, leased, or used by the Company is in violation of any Environmental Law or any applicable Law regarding Hazardous Substances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;To Seller's knowledge, there has not been any spill, leak, discharge, injection, escape, leaching, dumping, disposal, or release of any kind of any Hazardous Substances in violation of any Environmental Law with respect to the business or assets of the Company or any Real Property currently owned, leased, or used by the Company. Neither the Company nor Seller received notice from any Person that any Real Property currently owned, leased, or used by the Company has been contaminated with any Hazardous Substances which would reasonably be expected to result in an environmental claim against, or a violation of Environmental Laws by, Seller or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties set forth in this Section 3.13(c) are the Seller's sole and exclusive representations and warranties regarding environmental matters.

**Section 3.15&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Matters.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 3.15(a)</u> of the Disclosure Schedules contains a list of each material benefit, retirement, employment, consulting, compensation, incentive, bonus, stock option, restricted stock, stock appreciation right, phantom equity, change in control, severance, vacation, paid time off, welfare and fringe-benefit agreement, plan, policy, and program, whether or not reduced to writing, in effect and covering one or more employees or directors of the Company or the beneficiaries or dependents of any such Persons, and is maintained, sponsored, contributed to, or required to be contributed to by

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the Company, or under which the Company has any material liability for premiums or benefits (each, a "**Benefit Plan**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To Seller's knowledge, each Benefit Plan and related trust complies with all applicable Laws (including the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder ("**ERISA**") and the Internal Revenue Code of 1986 (as amended, the "**Code**")the Code). Each Benefit Plan that is intended to be qualified under Section 401(a) of the Code (a "**Qualified Benefit Plan**") has received a favorable determination letter from the Internal Revenue Service, or with respect to a prototype plan, can rely on an opinion letter from the Internal Revenue Service to the prototype plan sponsor, to the effect that such Qualified Benefit Plan is so qualified and that the plan and the trust related thereto are exempt from federal income Taxes under Sections 401(a) and 501(a), respectively, of the Code, and, to Seller's knowledge, nothing has occurred that could reasonably be expected to cause the revocation of such determination letter from the Internal Revenue Service or the unavailability of reliance on such opinion letter from the Internal Revenue Service. All benefits, contributions, and premiums required by and due under the terms of each Benefit Plan or applicable Law have been timely paid in accordance with the terms of such Benefit Plan, the terms of all applicable Laws, and GAAP. With respect to any Benefit Plan, to Seller's knowledge, no event has occurred or is reasonably expected to occur that has resulted in or would subject the Company to a Tax under Section 4971 of the Code or the assets of the Company to a lien under Section 430(k) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;No Benefit Plan: (i) is subject to the minimum funding standards of Section 302 of ERISA or Section 412 of the Code; or (ii) is a "multiemployer plan" (as defined in Section 3(37) of ERISA). Except as would not have a Material Adverse Effect, neither Seller nor the Company: (i) has withdrawn from any pension plan under circumstances resulting (or expected to result) in a liability to the Pension Benefit Guaranty Corporation; or (ii) has engaged in any transaction which would give rise to a liability of the Company or Buyer under Section 4069 or Section 4212(c) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Except those as set forth in Section 3.15(a) of the Disclosure Scheduled and other than as required under Section 4980B of the Code or other applicable Law, no Benefit Plan provides benefits or coverage in the nature of health, life, or disability insurance following retirement or other termination of employment (other than death benefits when termination occurs upon death).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;As of execution of this Agreement, there is no pending or, to Seller's knowledge, threatened action relating to a Benefit Plan; and (ii) for the past one (1) year, no Benefit Plan has been the subject of an examination or audit by a Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;As of execution of this Agreement, no Benefit Plan exists that could: (i) result in the payment to any employee, director, or consultant of any money or other property; (ii) accelerate the vesting of or provide any additional rights or benefits (including funding of compensation or benefits through a trust or otherwise) to any employee, director, or consultant, except as a result of any partial plan termination

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resulting from this Agreement; or (iii) limit or restrict the ability of Buyer or its Affiliates to merge, amend, or terminate any Benefit Plan, in each case, as a result of the execution of this Agreement. Neither the execution of this Agreement nor the consummation of the transactions contemplated hereby will result in "excess parachute payments" within the meaning of Section 280G(b) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties set forth in this Section 3.15 are the Seller's sole and exclusive representations and warranties regarding employee benefit matters.

**Section 3.16&nbsp;&nbsp;&nbsp;&nbsp;Employment Matters.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company is not a party to, or bound by, any collective bargaining or other agreement with a labor organization representing any of its employees. Since the Company's formation, there has not been, nor, to Seller's knowledge, has there been any threat of, any strike, slowdown, work stoppage, picketing, or other similar labor disruption or dispute affecting the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To Seller's knowledge, the Company is in compliance with all applicable Laws pertaining to employment and employment practices to the extent they relate to employees of the Company, except to the extent non-compliance would not result in a Material Adverse Effect. There are no Actions against the Company pending, or to the Seller's knowledge, threatened to be brought or filed, by or with any Governmental Authority or arbitral tribunal in connection with the employment or termination of employment of any current or former employee of the Company, including, without limitation, any Action relating to unfair labor practices, employment discrimination, harassment, retaliation, leave, accommodation, minimum wages, overtime compensation, equal pay, or any other hiring, employment, or employment termination related matter arising under applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties set forth in this Section 3.15(f) are the Seller's sole and exclusive representations and warranties regarding employment matters.

**Section 3.17&nbsp;&nbsp;&nbsp;&nbsp;Taxes.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;All material returns, declarations, reports, information returns and statements, and other documents relating to Taxes (including amended returns and claims for refund) (collectively, "**Tax Returns**") required to be filed by the Company on or before the Closing Date have been filed (taking into account any valid extensions). Such Tax Returns are true, correct, and complete in all material respects. The Company is not currently the beneficiary of any extension of time within which to file any material Tax Return other than extensions of time to file Tax Returns obtained in the ordinary course of business. All material Taxes due and owing by the Company have been paid or accrued. The term "**Taxes**" means all federal, state, local, foreign, and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental, stamp, occupation, premium, property (real

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or personal), real property gains, windfall profits, customs, duties, or other taxes, fees, assessments, or charges of any kind whatsoever, together with any interest, additions, or penalties with respect thereto and any interest in respect of such additions or penalties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;No extensions or waivers of statutes of limitations have been given or requested with respect to any material Taxes of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;There are no ongoing Actions by any taxing authority against the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Company is not a party to any Tax-sharing agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;All material Taxes which the Company is obligated to withhold from amounts owing to any employee, creditor, or third party have been paid or accrued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Except for certain representations related to Taxes in Section 3.15, the representations and warranties set forth in this Section 3.16(c) are the Seller's sole and exclusive representations and warranties regarding Tax matters.

**Section 3.18&nbsp;&nbsp;&nbsp;&nbsp;Brokers.** No broker, finder, or investment banker is entitled to any brokerage, finder's, or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Seller.

**Section 3.19&nbsp;&nbsp;&nbsp;&nbsp;No Other Representations and Warranties.** Except for the representations and warranties contained in this ARTICLE III (including the related portions of the Disclosure Schedules), none of Seller, the Company, or any other Person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of Seller or the Company, including any representation or warranty as to the accuracy or completeness of any information regarding the Company furnished or made available to Buyer or as to the future revenue, profitability, or success of the Company, or any representation or warranty arising from statute or otherwise in law.

**ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER**

Buyer represents and warrants to Seller that the statements contained in this ARTICLE IV are true and correct as of the date hereof.

**Section 4.01&nbsp;&nbsp;&nbsp;&nbsp;Organization and Authority of Buyer.** Buyer is a corporation duly organized, validly existing, and in good standing under the Laws of the state of Illinois. Buyer has all necessary corporate power and authority to enter into this Agreement, to carry out its obligations hereunder, and to consummate the transactions contemplated hereby. The execution and delivery by Buyer of this Agreement, the performance by Buyer of its obligations hereunder, and the consummation by Buyer of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of Buyer. This Agreement constitutes a legal, valid, and binding obligation of Buyer enforceable against Buyer in accordance with its respective terms, except as such enforceability may be limited by bankruptcy, insolvency,

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reorganization, moratorium, or similar Laws affecting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

**Section 4.02&nbsp;&nbsp;&nbsp;&nbsp;No Conflicts or Consents.** The execution, delivery, and performance by Buyer of this Agreement, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict with any provision of the certificate of incorporation or by- laws of Buyer; (b) violate or conflict with any provision of any Law or Governmental Order applicable to Buyer; (c) require the consent, notice, or other action by any Person under, violate or conflict with, or result in the acceleration of any agreement to which Buyer is a party; or (d) require any consent, permit, Governmental Order, filing or notice from, with, or to any Governmental Authority; except, in the cases of clauses (b) and (c), where the violation, conflict, acceleration, or failure to obtain consent or give notice would not have a material adverse effect on the buyer's ability to consummate the transactions contemplated hereby and, in the case of clause (d), where such consent, permit, Governmental Order, filing, or notice which, in the aggregate, would not have a material adverse effect on Buyer's ability to consummate the transactions contemplated hereby.

**Section 4.03&nbsp;&nbsp;&nbsp;&nbsp;Investment Purpose.** Buyer is acquiring the Shares solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof or any other security related thereto within the meaning of the Securities Act of 1933, as amended (the "**Securities Act**"). Buyer acknowledges that Seller has not registered the offer and sale of the Shares under the Securities Act or any state securities laws, and that the Shares may not be pledged, transferred, sold, offered for sale, hypothecated, or otherwise disposed of except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as applicable. Buyer is able to bear the economic risk of holding the Shares for an indefinite period (including total loss of its investment) and has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risk of its investment.

**Section 4.04&nbsp;&nbsp;&nbsp;&nbsp;Brokers.** No broker, finder, or investment banker is entitled to any brokerage, finder's, or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer.

**Section 4.05&nbsp;&nbsp;&nbsp;&nbsp;Legal Proceedings.** There are no Actions pending or, to Buyer's knowledge, threatened against or by Buyer that challenge or seek to prevent, enjoin, or otherwise delay the transactions contemplated by this Agreement.

**Section 4.06&nbsp;&nbsp;&nbsp;&nbsp;Independent Investigation.** Buyer has conducted its own independent investigation, review, and analysis of the Company, and acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books, and records and other documents and data of Seller and the Company for such purpose. Buyer acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;In making its decision to enter into this Agreement and to consummate the transactions contemplated hereby, Buyer:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;has relied solely upon its own investigation and the express representations and warranties of Seller set forth in ARTICLE III of this Agreement (including related portions of the Disclosure Schedules); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;has not relied, is not relying, and disclaims reliance on any and all express or implied representations or warranties, whether written or oral, made by Seller or any of its representatives, directors, officers, or agents, other than the express representations and warranties of Seller set forth in Article III of this Agreement (including related portions of the Disclosure Schedules).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;None of Seller, the Company, or any other Person has made any representation or warranty as to Seller, the Company, or this Agreement, except as expressly set forth in ARTICLE III of this Agreement (including related portions of the Disclosure Schedules).

**ARTICLE V COVENANTS**

**Section 5.01&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;During the period commencing at the Closing and ending on the date which is 12 months from the Closing (or if earlier, the date of the employee's termination of employment with the Company), Buyer shall and shall cause the Company to provide each Employee who remains employed immediately after the Closing (a "**Company Continuing Employee**") with: (i) base salary provided by the Company immediately prior to the Closing; (ii) target bonus opportunities (excluding equity-based compensation), if any, which are no less than the target bonus opportunities (excluding equity-based compensation) provided by the Company immediately prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) retirement and welfare benefits that are no less favorable in the aggregate than those provided by the Company immediately prior to the Closing; and (iv) severance benefits that are no less favorable than the practice, plan, or policy in effect for such Company Continuing Employee immediately prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;With respect to any employee benefit plan maintained by Buyer (collectively, "**Buyer Benefit Plans**") in which any Company Continuing Employees will participate effective as of the Closing, Buyer shall, or shall cause the Company to, recognize all service of the Company Continuing Employees with the Company, as if such service were with Buyer, for vesting and eligibility purposes in any Buyer Benefit Plan in which such Company Continuing Employees may be eligible to participate after the Closing Date; provided, however, such service shall not be recognized to the extent that (i) such recognition would result in a duplication of benefits or (ii) such service was not recognized under the corresponding Benefit Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;This Section 5.01 shall be binding upon and inure solely to the benefit of each of the parties to this Agreement, and nothing in this Section 5.01, express or implied, shall confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Section 5.01. Nothing contained herein, express or

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implied, shall be construed to establish, amend, or modify any benefit plan, program, agreement, or arrangement. The parties hereto acknowledge and agree that the terms set forth in this Section 5.01 shall not create any right in any employee of the Company or any other Person to any continued employment with the Company, Buyer, or any of their respective Affiliates or compensation or benefits of any nature or kind whatsoever.

**Section 5.02&nbsp;&nbsp;&nbsp;&nbsp;Director and Officer Indemnification Liability.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Buyer agrees that all rights to indemnification, advancement of expenses, and exculpation by the Company now existing in favor of each Person who is now, or has been at any time prior to the date hereof, an officer or director of the Company, as provided in the certificate of incorporation or by-laws of the Company, in each case as in effect on the date of this Agreement, or pursuant to any other agreements in effect on the date hereof and disclosed in <u>Section 5.02(a)</u> of the Disclosure Schedules, shall survive the Closing Date and shall continue in full force and effect in accordance with their respective terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The obligations of Buyer and the Company under this Section 5.02 shall not be terminated or modified in such a manner as to adversely affect any director or officer to whom this Section 5.02 applies without the consent of such affected director or officer (it being expressly agreed that the directors and officers to whom this Section 5.02 applies shall be third-party beneficiaries of this Section 5.02, each of whom may enforce the provisions of this Section 5.02).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In the event Buyer, the Company, or any of their respective successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity in such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any Person, then, and in either such case, proper provision shall be made so that the successors and assigns of Buyer or the Company, as the case may be, shall assume all of the obligations set forth in this Section 5.02.

**Section 5.03&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality.** Buyer covenants and agrees to keep the Company proprietary information provided to Buyer prior to or after execution of this Agreement strictly confidential and not to use it for any purpose other than as required to perform its duties and obligations under this Agreement.

**Section 5.04&nbsp;&nbsp;&nbsp;&nbsp;Public Announcements.** Unless otherwise required by applicable Law, no party to this Agreement shall make any public announcements in respect of this Agreement or the transactions contemplated hereby without the prior written consent of the other party (which consent shall not be unreasonably withheld, conditioned, or delayed), and the parties shall cooperate as to the timing and contents of any such announcement.

**Section 5.05&nbsp;&nbsp;&nbsp;&nbsp;Further Assurances.** Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents and instruments and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

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**Section 5.06&nbsp;&nbsp;&nbsp;&nbsp;Transfer Taxes.** All transfer, documentary, sales, use, stamp, registration, value added, and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement (including any real property transfer Tax and any other similar Tax) shall be solely borne and paid by Buyer when due. Buyer shall, at its own sole expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Seller shall cooperate with respect thereto as necessary).

**ARTICLE VI INDEMNIFICATION**

**Section 6.01&nbsp;&nbsp;&nbsp;&nbsp;Indemnification by Seller.** Subject to the other terms and conditions of this ARTICLE VI, Seller shall indemnify Buyer against, and shall hold Buyer harmless from and against, any and all losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys' fees (collectively, "**Losses**"), incurred or sustained by, or imposed upon, Buyer based upon, arising out of, with respect to, or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Seller pursuant to this Agreement.

**Section 6.02&nbsp;&nbsp;&nbsp;&nbsp;Indemnification by Buyer.** Subject to the other terms and conditions of this ARTICLE VI, Buyer shall indemnify Seller against, and shall hold Seller harmless from and against, any and all Losses incurred or sustained by, or imposed upon, Seller based upon, arising out of, with respect to, or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Buyer pursuant to this Agreement.

**Section 6.03&nbsp;&nbsp;&nbsp;&nbsp;Certain Limitations.** The party making a claim under this ARTICLE VI is referred to as the "**Indemnified Party**," and the party against whom such claims are asserted under this ARTICLE VI is referred to as the "**Indemnifying Party**." The indemnification provided for in Section 6.01 and Section 6.02 shall be subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Indemnifying Party shall not be liable to the Indemnified Party for indemnification under Section 6.01(a) and Section 6.02(a), as the case may be, until the aggregate amount of all Losses in respect of indemnification under Section 6.01(a) or Section 6.02(b), as the case may be, exceeds 100% of the Purchase Price (the "**Deductible**"), in which event the Indemnifying Party shall only be required to pay or be liable for Losses in excess of the Deductible.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The aggregate amount of all Losses for which an Indemnifying Party shall be liable pursuant to Section 6.01(a) or Section 6.02(a), as the case may be, shall not exceed 150% of the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In no event shall any Indemnifying Party be liable to any Indemnified Party for any punitive, incidental, consequential, special, or indirect damages, including loss of future revenue or income, loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement, or diminution of value or any damages based on any type of multiple.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Seller shall not be liable under this ARTICLE VI for any Losses based upon or arising out of any inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement if Buyer had knowledge of such inaccuracy or breach prior to the Closing.

**Section 6.04&nbsp;&nbsp;&nbsp;&nbsp;Indemnification Procedures.** Whenever any claim arise for indemnification hereunder, the Indemnified Party shall promptly provide written notice of such claim to the Indemnifying Party. Such a notice by the Indemnified Party shall: (a) describe the claim in reasonable detail; (b) include copies of all material written evidence thereof; and (c) indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. In connection with any claim giving rise to indemnity hereunder resulting from or arising out of any Action by a Person who is not a party to this Agreement, the Indemnifying Party, at its sole cost and expense and upon written notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory to the Indemnified Party. The Indemnified Party shall be entitled to participate in the defense of any such Action, with its counsel and at its own cost and expense, subject to the Indemnifying Party's right to control the defense thereof. If the Indemnifying Party does not assume the defense of any such Action, the Indemnified Party may, but shall not be obligated to, defend against such Action in such manner as it may deem appropriate, including settling such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying Party of its indemnification obligations herein provided with respect to any damages resulting therefrom. Seller and Buyer shall cooperate with each other in all reasonable respects in connection with the defense of any claim, including: (i) making available (subject to the provisions of Section 5.03) records relating to such claim; and (ii) furnishing, without expense (other than reimbursement of actual out-of- pocket expenses) to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such claim. The Indemnifying Party shall not settle any Action without the Indemnified Party's prior written consent (which consent shall not be unreasonably withheld, conditioned, or delayed).

**Section 6.05&nbsp;&nbsp;&nbsp;&nbsp;Survival.** Subject to the limitations and other provisions of this Agreement, the representations and warranties contained herein shall survive the Closing and shall remain in full force and effect until the date that is 12 months from the Closing Date. None of the covenants or other agreements contained in this Agreement shall survive the Closing Date other than those which by their terms contemplate performance after the Closing Date, and each such surviving covenant and agreement shall survive the Closing for the period contemplated by

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Docusign Envelope ID: D5BAEBB4-1AE2-4469-BCE3-566404A186CB

its terms. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of such survival period, and such claims shall survive until finally resolved.

**Section 6.06 Tax Treatment of Indemnification Payments.** All indemnification payments made under this Agreement shall be treated by the parties as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.

**Section 6.07&nbsp;&nbsp;&nbsp;&nbsp;Exclusive Remedies.** The parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims (other than claims arising from intentional fraud on the part of a party hereto in connection with the transactions contemplated by this Agreement) for any breach of any representation, warranty, covenant, agreement, or obligation set forth herein or otherwise relating to the subject matter of this Agreement shall be pursuant to the indemnification provisions set forth in this ARTICLE VI. In furtherance of the foregoing, each party hereby waives, to the fullest extent permitted under Law, any and all rights, claims, and causes of action for any breach of any representation, warranty, covenant, agreement, or obligation set forth herein or otherwise relating to the subject matter of this Agreement it may have against the other parties hereto and their Affiliates arising under or based upon any Law, except pursuant to the indemnification provisions set forth in this ARTICLE VI. Nothing in this Section 6.05 shall limit any Person's right to seek and obtain any equitable relief to which such Person shall be entitled or to seek any remedy on account of any intentional fraud by any party hereto.

**ARTICLE VII MISCELLANEOUS**

**Section 7.01&nbsp;&nbsp;&nbsp;&nbsp;Expenses.** Except as otherwise expressly provided herein (including Section 5.06 hereof), all costs and expenses, including attorneys' fees, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

**Section 7.02&nbsp;&nbsp;&nbsp;&nbsp;Notices.** All notices, claims, demands, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or (d) on the seventh day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid, if sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 7.02):

**If to Seller:&nbsp;&nbsp;&nbsp;&nbsp;**GPCR THERAPEUTICS, INC.

Room 407, Nakseongdae R&D Center, 38, Nakseongdae-Ro,

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Gwanak-Gu, Seoul, KOREA, 08790 Email: <u>seenbio@gpcr.co.kr</u>

Attention: CEO, DONGSEUNG SEEN

**If to Buyer:&nbsp;&nbsp;&nbsp;&nbsp;**EXICURE, INC.

2430 N. Halsted St. Chicago, IL, USA

Email: ayoo@exicuretx.com Attention: CEO, ANDY YOO

**Section 7.03&nbsp;&nbsp;&nbsp;&nbsp;Interpretation; Headings.** This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

**Section 7.04&nbsp;&nbsp;&nbsp;&nbsp;Severability.** If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement.

**Section 7.05&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement.** This Agreement constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous representations, warranties, understandings, and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement[ any exhibits,] and the Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

**Section 7.06&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.** This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.

Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.

**Section 7.07&nbsp;&nbsp;&nbsp;&nbsp;Amendment and Modification; Waiver.** This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No failure to exercise, or delay in exercising, any right or remedy arising from this Agreement shall operate or be construed as a waiver thereof.

No single or partial exercise of any right or remedy hereunder shall preclude any other or further exercise thereof or the exercise of any other right or remedy.

**Section 7.08&nbsp;&nbsp;&nbsp;&nbsp;Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;All matters arising out of or relating to this Agreement shall be governed by and construed in accordance with the internal laws of the State of California without giving effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction). Any Action arising out of or related to this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States of America or the courts of the State of California, in each case located in county of San Mateo, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such Action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING, CAUSE OF ACTION OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING ANY EXHIBITS AND SCHEDULES ATTACHED TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (I) NO REPRESENTATIVE OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION; (II) IT HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (III) IT MAKES THIS WAIVER KNOWINGLY AND VOLUNTARILY; AND (IV) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.**

**Section 7.09&nbsp;&nbsp;&nbsp;&nbsp;Counterparts.** This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

[SIGNATURE PAGE FOLLOWS]

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**IN WITNESS WHEREOF**, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

GPCR THERAPEUTICS, INC.&nbsp;&nbsp;&nbsp;&nbsp;

By<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> DONGSEUNG SEEN

CEO

EXICURE, INC.

By<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> 

ANDY YOO

CEO

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**EXHIBIT A**

**DEFINITIONS CROSS-REFERENCE TABLE**

The following terms have the meanings set forth in the location in this Agreement referenced below:

---

| | |
|:---|:---|
| **Term** | **Section** |
| Actions | Section 3.12(a) |
| Affiliate | Section 3.12(a) |
| Agreement | Preamble |
| Balance Sheet | Section 3.06 |
| Balance Sheet Date | Section 3.06 |
| Benefit Plan | Section 3.15(a) |
| Buyer | Preamble |
| Buyer Benefit Plans | Section 5.01(b) |
| Closing | Section 2.01 |
| Closing Date | Section 2.01 |
| Code | Section 3.15(b) |
| Company | Recitals |
| Company Continuing Employee | Section 5.01(a) |
| Company Intellectual Property | Section 3.10(b) |
| Control | Section 3.12(a) |
| Deductible | Section 6.03(a) |
| Disclosure Schedules | Section 1.02 |
| Encumbrance | Section 1.01 |
| Environmental Laws | Section 3.14.(a) |
| ERISA | Section 3.15(b) |
| Financial Statements | Section 3.06 |
| GAAP | Section 3.06 |
| Governmental Authority | Section 3.05 |
| Governmental Order | Section 3.05 |
| Hazardous Substances | Section 3.14.(a) |
| Indemnified Party | Section 6.03 |

---

------

---

| | |
|:---|:---|
| Indemnifying Party | Section 6.03 |
| Insurance Policies | Section 3.11 |
| Intellectual Property | Section 3.10(a) |
| Law | Section 3.05 |
| Losses | Section 6.01 |
| Material Adverse Effect | Section 3.05 |
| Material Contracts | Section 3.09(a) |
| Permits | Section 3.13(b) |
| Person | Section 3.05 |
| Purchase Price | Section 1.02 |
| Qualified Benefit Plan | Section 3.15(b) |
| Securities Act | Section 4.03 |
| Seller | Preamble |
| Seller's knowledge | Article III |
| Shares | Recitals |
| Taxes | Section 3.17(a) |
| Tax Returns | Section 3.17(a) |

---

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**EXHIBIT B**

**Disclosure schedules**

**Section 1.02 Purchase Price; Payment.**

Account Holder: GPCR Therapeutics, Inc. Account Number: 072-134963-56-00015

Address: 407, Nakseongdae R&D Center, 38, Nakseongdae-Ro, Gwanak-Gu, Seoul, South Korea Phone: +82-2-878-2848

Bank Name: Industrial Bank of Korea SWIFT Code: IBKOKRSE

**Section 3. 09(a) Material Contracts.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Master service agreement with GPCR Therapeutics, Inc. (Seller)

The Company provides R&D service and issues invoices monthly for all expenses. Seller pays the invoices based on this agreement and it was terminated at the end of December 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Sublease agreement (400 Seaport Ct. Suite 102, Redwood City, California 94063) monthly rent this month $50,656.21 (terminates on April 30, 2026)

(Note: (1) December rents unpaid; (2) early termination negotiation may be able to resume after paying the unpaid bills)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Vivarium lab service agreement (300 Lincoln Centre Dr, Foster City 94404) Monthly base rent: $4,900 (including one lab bench, 2 lab tables, lab spaces, etc.)

(Note: can terminate with 30-day notice)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;PEO service agreement with Insperity

Insperity provides HR services including running payroll, benefits (health insurances,

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401(k), attendance management, HR compliance, employment management, W/C, etc. monthly charge approx. $1,670 (for current 6 employees)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;Cell line, MC38 license agreement with NIH Annual royalty of $5,000 (next due on 01/01/2025)

**Section 3.11 Insurance.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Business Owners General liability:

Policy No. 57SBABB8KV9 (Annual premium $10,686.00 as of 2024) Coverage per incident: $1,000,000; and aggregated coverage: $2,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Workers Compensation (Through PEO service provider, Insperity) Policy premium, semi-monthly: $2,314 on 11/05/2024

**Section 3.15(a) Employment Benefit Matters.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Health Insurance (Medical/Dental/Vision):

Company pays 90% of Employee's premium; and 60% of the dependent(s)' premium

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;401(k)

Company matches up to 6%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Base salary (individual amounts may be provided separately)

Total amount for six employees per period (semi-monthly): $35,852.02, Gross

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;Annual target bonus

15% of annual base salary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;Stock options (the details may be provided separately)

Stock options of GPCR Therapeutics (parent company in Korea) were granted

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;Vacation

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Employees accrue 15 PTO days/ 5 sick days

-&nbsp;&nbsp;&nbsp;&nbsp;exceptions: Pina 25 PTO days, Seulki 17 PTO days pursuant to their respective employment contracts

-&nbsp;&nbsp;&nbsp;&nbsp;100% carry over allowed annually

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;Fringe

Pina and Nina receive contractual medical benefit allowance amounts (due to employment offer by the parent company)

-&nbsp;&nbsp;&nbsp;&nbsp;Pina: $1,652.34/month

-&nbsp;&nbsp;&nbsp;&nbsp;Nina: $1,000.00/month

**EXHIBIT C**

**Supplemental Agreement**

The Seller acknowledges and confirm to the Buyer as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Account Receivables from GPCR Therapeutics, Inc. as of Dec 31, 2024

-&nbsp;&nbsp;&nbsp;&nbsp;The Seller shall pay the unpaid debt ($940,518.84) to the GPCR USA on the same day as a buyer's payment day in section 1.02.

-&nbsp;&nbsp;&nbsp;&nbsp;The above unpaid debt is based on the Company's financial statements as at the end of December, 2024, that provided by the Seller, and any future due diligence adjustments will be agreed between the Seller and the Company.

## Exhibit 10.2

**Exhibit 10.2**

***Executed Version***

**LICENSE AND COLLABORATION AGREEMENT**

THIS LICENSE AND COLLABORATION AGREEMENT ("Agreement") is entered

into as of January 19, 2025 (the "**Effective Date**") by and between

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;GPCR Therapeutics, Inc., a Korean corporation with its principal offices at Nakseongdae R&D Center, 38, Nakseongdae-ro, Gwanak-gu, Seoul 08790 Korea ("**GPCR**") and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Exicure, Inc., an Illinois corporation having its principal place of business at 2430 N. Halsted St. Chicago, IL USA ("**EXICURE**").

GPCR and EXICURE are sometimes collectively referred to herein as the "**Parties**" and separately as a "**Party**."

WHEREAS, GPCR is the owner of all rights, title and interest in and to (i) certain CXCR4 inhibitor materials known as GPC-100(Burixafor), technologies related to such material and the patents listed in Exhibit A.1 ("**GPC-100**"), and (ii) combination inhibition method of treatment and technologies related to such method, including but not limited to the patents listed in Exhibit A.2 ("**Combination Method**," and together with GPC-100, the "**GPCR Technology**");

WHEREAS, EXICURE desires to license certain intellectual property from GPCR to develop and commercialize pharmaceutical products containing GPC-100, and GPCR is willing to grant such a license to EXICURE on the terms and conditions set forth herein; and

WHEREAS, EXICURE desires to perform Clinical Studies (as hereinafter defined) relating to Product in order to obtain Regulatory Approval (as hereinafter defined) within Territory for the Product.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and other good and valuable consideration, the receipt and legal sufficiency of which are hereby mutually acknowledged, GPCR and EXICURE hereby agree as follows:

**1.&nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1&nbsp;&nbsp;&nbsp;&nbsp;"Affiliate"** of a Party means any Person, whether directly or indirectly, controlling, controlled by, or under common control with, such Party or Person, as applicable. For the purposes of this definition, the term "control" means (i) direct or indirect ownership of more than fifty percent (50%) of the equity (or such lesser percentage which is the maximum allowed to be owned by a foreign corporation in a particular jurisdiction) having the power to vote on or direct the affairs of such Party or Person, as applicable, or (ii) the power to direct decisions of such Party or Person, as applicable, including the power to direct management and policies of such Party or Person, as applicable, whether by reason of ownership, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2&nbsp;&nbsp;&nbsp;&nbsp;"Clinical Study(ies)"** shall mean each of the controlled clinical trials for any field performed for the GPC-100. Such Clinical Studies will be performed in accordance with the applicable laws and regulations, including but not limited to Federal Food, Drug and

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Cosmetic Act and applicable regulations promulgated thereunder (including 21 CFR Part 312), as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3&nbsp;&nbsp;&nbsp;&nbsp;"Commercialization"** or **"Commercialize"** shall mean activities directed to obtaining pricing and reimbursement approvals, manufacturing, marketing, promoting, distributing, importing, offering for sale or selling a Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4&nbsp;&nbsp;&nbsp;&nbsp;"Confidential Information"** shall mean trade secrets or confidential proprietary information of GPCR or EXICURE which may be exchanged between the Parties at any time and from time to time during the term of this Agreement. Information shall not be considered confidential to the extent that it (a) is publicly disclosed through no fault of any Party hereto, either before or after it becomes known to the receiving Party; (b) was known to the receiving Party prior to the date of this Agreement, which knowledge was acquired independently and not from another Party hereto (or such Party's employees), to the extent that the receiving Party can show documentary evidence of such knowledge; (c) is subsequently disclosed to the receiving Party in good faith by a third Party who has a right to make such disclosure; (d) has been published by a third party as a matter of right, subject to the prior written consent of such third party if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5&nbsp;&nbsp;&nbsp;&nbsp;"Development"** means the conduct of any and all activities directed to non-clinical, pre-clinical, or clinical research and development relating to Product, including drug discovery, identification, research, engineering, characterization, development, modification, optimization, drug metabolism and pharmacokinetics, toxicology, pharmacology, statistical analysis and report writing, formulation development and optimization, quality assurance/quality control, CMC activities, Clinical Studies, and all other activities necessary to seek, obtain, and maintain Regulatory Approval. "Develop" means to engage in Development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6&nbsp;&nbsp;&nbsp;&nbsp;"EMA"** means the European Medicines Agency or any successor agency with responsibilities comparable to the European Medicines Agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7&nbsp;&nbsp;&nbsp;&nbsp;"FDA"** shall mean the United States Food and Drug Administration or any successor agency thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8&nbsp;&nbsp;&nbsp;&nbsp;"Generic Product"** shall mean any pharmaceutical product that is introduced by a third party other than GPCR, EXICURE, or each of their Affiliates or sublicensees, which contains the same or equivalent active pharmaceutical ingredient(s) as contained in GPC-100.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9&nbsp;&nbsp;&nbsp;&nbsp;"Inventions"** shall mean and include any and all inventions and discoveries which are, or may be, patentable or otherwise protectable under the patent or other intellectual property laws, which relate to the Product, and which are conceived, discovered or reduced to practice during the continuance of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10&nbsp;&nbsp;&nbsp;&nbsp;"License Income"** shall mean any payments that EXICURE receives from an Affiliate or third party in consideration of the license of the rights obtained by EXICURE for GPC-100 or GPCR Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.11&nbsp;&nbsp;&nbsp;&nbsp;"MFDS"** means the Ministry of Food and Drug Safety of Korea or any successor agency thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.12&nbsp;&nbsp;&nbsp;&nbsp;"Net Sales"** means the gross invoices of sales of Product pursuant to this Agreement by EXICURE or its Affiliates and its or their licensees or sublicensees, less the following deductions, but only to the extent not already adjusted for in determining gross invoices:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;transportation charges, including, insurance, for transporting Product

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;sales, excise and consumption taxes and custom duties, and any other governmental charges imposed on the production, importation, use or sale of Product, but excluding income taxes and any tax which is not refundable or creditable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;allowances or credits to customers on account of rejection or return of Product; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;rebates, credits, charge backs, fees, reimbursements or similar payments that are granted to wholesalers and other distributors (other than a distributor that is an Affiliate of EXICURE), government entities, managed care entities or other customers.

Any sales of Product between EXICURE and its Affiliates and its or their licensees or sublicensees, for resale will be excluded from the computation of Net Sales, and Net Sales shall be calculated as above only on the gross invoice price of the first arm's length sale thereafter to an independent third party. Net Sales will be calculated from the books and records of EXICURE, its Affiliates and its or their licensees or sublicensees, as the case may be, maintained in accordance with International Financial Reporting Standards (IFRS), consistently applied. In determining such amounts, EXICURE will use its then-current standard procedures and methodologies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.13&nbsp;&nbsp;&nbsp;&nbsp;"Product"** shall mean any product containing GPC-100, the manufacture, use, importation, offer for sale or sale of which would, but for the license granted herein, infringe any valid claim of the patents listed in Exhibit A.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.14&nbsp;&nbsp;&nbsp;&nbsp;"Regulatory Approval"** shall mean the approval of the applicable regulatory authority necessary for the marketing and sale of the Product in a country, excluding separate pricing and/or reimbursement approvals that may be required, and including the expansion or modification of the label for any indication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.15&nbsp;&nbsp;&nbsp;&nbsp;"Regulatory Authority(ies)"** means any federal, national, multinational, state, provincial or local regulatory agency, department, bureau or other governmental entity with authority over the marketing and sale of a pharmaceutical product in a country, including the EMA in the EU, the FDA in the United States, and the MFDS in South Korea.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.15&nbsp;&nbsp;&nbsp;&nbsp;"Steering Committee"** has the meaning set forth in Section 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.16&nbsp;&nbsp;&nbsp;&nbsp;"Territory"** shall mean all the countries and territories in the world other than the Republic of Korea.

**2.&nbsp;&nbsp;&nbsp;&nbsp;LICENSES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1&nbsp;&nbsp;&nbsp;&nbsp;Grant to Exicure**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1&nbsp;&nbsp;&nbsp;&nbsp;**Grant of License to GPC-100.** Subject to the terms and conditions of this Agreement, GPCR hereby grants to EXICURE, during the Term, a royalty-bearing exclusive

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license, with the right to grant sublicenses in accordance with Section 2.2, to GPC-100 (subject to Section 8.1) in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2&nbsp;&nbsp;&nbsp;&nbsp;**Grant of License to Combination Method.** Subject to the terms and conditions of this Agreement, GPCR hereby grants to EXICURE, during the Term, a royalty-bearing non- exclusive license, with the right to grant sublicenses in accordance with Section 2.2, to Combination Method solely to the extent necessary to Develop and Commercialize Products in the Territory. The license granted in this Section 2.1.2 is exclusive to the Product that GPCR shall not license, grant, or transfer any right to any third Party to Develop or Commercialize any Product that contains GPC-100 in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2&nbsp;&nbsp;&nbsp;&nbsp;Sublicensing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1&nbsp;&nbsp;&nbsp;&nbsp;**Permission to Sublicense.** EXICURE has the right to grant sublicenses under the rights and licenses granted in Section 2.1, provided that (i) EXICURE satisfies itself on reasonable grounds that any proposed sublicensee is solvent and has the commercial and technical capability to perform its obligations under the sublicense; and (ii) EXICURE first obtains GPCR's written consent (not to be unreasonably withheld) prior to such sublicense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2&nbsp;&nbsp;&nbsp;&nbsp;**Sublicense Requirements.** All sublicenses granted under the licenses granted hereunder must be in writing and be subject to and consistent with the applicable terms and conditions of this Agreement. Each sublicense granted to a third Party must prohibit such third party sublicensee from further sublicensing without the prior written consent of GPCR. EXICURE shall notify GPCR in writing and provide a true and complete copy of each sublicense granted to a third party and any amendment to any sublicense within thirty (30) days of entering into or amending the sublicense (as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3&nbsp;&nbsp;&nbsp;&nbsp;**Business Development to Sublicense.** GPCR retains the right to freely conduct business development activities for the above sublicensing. Notwithstanding the foregoing, GPCR cannot sublicense GPC-100 without EXICURE's prior written consent.

**3.&nbsp;&nbsp;&nbsp;&nbsp;DEVELOPMENT and COMMERCIALIZATION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1&nbsp;&nbsp;&nbsp;&nbsp;Diligence.** EXICURE, directly or through its Affiliates or sublicensees, shall be under obligations to conduct all Development and Commercialization of Products in the Territory, including all activities necessary to obtain and maintain Regulatory Approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2&nbsp;&nbsp;&nbsp;&nbsp;Steering Committee.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1&nbsp;&nbsp;&nbsp;&nbsp;Within twenty (20) business days after the Effective Date, the parties shall establish a Steering Committee ("Steering Committee"). Each Party shall appoint two (2) of its executives or managers to serve as its representatives on the Steering Committee. The total number of representatives on a Steering Committee may be changed by mutual agreement of the Parties; provided that there will at all times be an equal number of representatives of each of GPCR and EXICURE on the Steering Committee. In accordance with the provisions and objectives of this Agreement, the Steering Committee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;review progress of Development and discuss future Development activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;review and recommend patent strategy, including prosecution, protection, and enforcement, of patent on GPCR Technology.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;advise on any patent or other Intellectual Property issues that may arise concerning or affecting the Development or Commercialization of the Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2&nbsp;&nbsp;&nbsp;&nbsp;The Steering Committee shall meet as needed but not less than once each quarter during the Term. EXICURE shall prepare updates on Development activities and present such updates to the Steering Committee. Steering Committee meetings shall be held at times and places or in such form, such as by telephone or video conference, as the Steering Committee determines, unless otherwise agreed in writing by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3&nbsp;&nbsp;&nbsp;&nbsp;Decisions of the Steering Committee will be by unanimous vote of nominated representatives or their substitutes, with each parties' representatives collectively having one

(1) vote which may be exercised by a party's sole attendee at a meeting if the party's other representative cannot attend. In the event that the Steering Committee is unable to agree on a matter or proposal submitted by either party, the matter or proposal shall be considered in Dispute Resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.4&nbsp;&nbsp;&nbsp;&nbsp;The Steering Committee will have only the powers expressly delegated to them and will have no authority to (a) amend, modify, or waive compliance with this Agreement; (b) act on behalf of either Party in relation to any third party; or (c) decide any issues in a manner that would conflict with the express terms of this Agreement. Each Party will retain the rights, powers, and discretion granted to it under this Agreement, and no such rights, powers, or discretion will be delegated to or vested in the Steering Committee unless such delegation or vesting of rights is expressly provided for in this Agreement or the Parties otherwise expressly agree in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3&nbsp;&nbsp;&nbsp;&nbsp;Development.** EXICURE will have full authority and responsibility and bear all related expenses (including all accrued expenses of ongoing phase 2 clinical trial(NCT05561751)) for the Clinical Studies and other Development activities of all Products within the Territory. EXICURE will exercise commercially reasonable efforts to initiate the next Clinical Study and shall start the first dosing of the first patient in any new Clinical Trial by the end of 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4&nbsp;&nbsp;&nbsp;&nbsp;Commercialization.** EXICURE will exercise commercially reasonable efforts and diligence in Commercializing Products in each respective Territory after obtaining Regulatory Approval in such Territory.

**4.&nbsp;&nbsp;&nbsp;&nbsp;PAYMENTS AND ROYALTIES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1&nbsp;&nbsp;&nbsp;&nbsp;Upfront Fee Payment.** In partial consideration of the exclusive and non-exclusive licenses granted to EXICURE under this Agreement, EXICURE agrees to pay an upfront fee in the amount of US Dollars ("USD") one million (USD 1,000,000) to GPCR ("**Upfront Fee**"). Any payment under this Section 4.1 shall be delivered to GPCR within ***ten (10) business days*** after the Effective Date of this Agreement. EXICURE is willing to pay US Dollars("USD") half million (USD 500,000) by cash and Exicure will issue new Shares to GPCR up to USD500,000 at a price per share that is the lower of: (i) the Nasdaq Official Closing Price (as reflected on Nasdaq.com) immediately prior to the Effective Date; or (ii) the average Nasdaq Official Closing Price of the common stock (as reflected on Nasdaq.com) for the five trading days immediately prior to the Effective Date. If Exicure will be required by Nasdaq rules to issue additional new shares for the upfront fee, which requires additional

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steps, such as approval of a shareholder's meeting, the parties will agree to extend the payment deadline by mutual consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2&nbsp;&nbsp;&nbsp;&nbsp;Milestone Payment.** EXICURE shall promptly notify GPCR of the achievement of the milestone events set forth in the table below. In consideration of the achievement of each milestone below, EXICURE shall make the corresponding non-refundable and non-creditable following milestone payments to GPCR:

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| | |
|:---|:---|
| **Milestone** | **Milestone Payment** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Completion\*&nbsp;&nbsp;&nbsp;&nbsp;of&nbsp;&nbsp;&nbsp;&nbsp;ongoing&nbsp;&nbsp;&nbsp;&nbsp;phase&nbsp;&nbsp;&nbsp;&nbsp;2&nbsp;&nbsp;&nbsp;&nbsp;Clinical Trial((NCT05561751) | $1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First dosing of the first patient in any new Clinical Trial | $2000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receipt of first Marketing Authorization in EU5 (UK, Germany, France, Italy, Spain) | $7000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receipt of first Marketing Authorization in the US | $7000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Annual Net Sales of Product exceed $100,000,000 | $4000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Annual Net Sales of Product exceed $400,000,000 | $30000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Annual Net Sales of Product exceed $700,000,000 | $70000000 |

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\*For the purpose of this Section, "Completion" shall mean the delivery of results to the relevant trial safety management committee who does not recommend against progressing to further studies; and either results meet or exceed requirements established in scientific advice or controlled correspondence with the FDA, EMA or MFDS; or the FDA, EMA or MFDS approve the subsequent study (or accept a BLA or equivalent).

EXICURE shall pay the above milestone payments to GPCR within thirty (30) days after each milestone has been achieved. If EXICURE's shares are publicly traded, EXICURE may issue to GPCR, and GPCR shall subscribe from EXICURE, if agreed in writing between both Parties, the number of EXICURE's common shares equivalent to up to 100% of the milestone payments paid by EXICURE calculated in accordance with Section 4.2 at a price per share that is the lower of: (i) the Nasdaq Official Closing Price (as reflected on Nasdaq.com) immediately prior to the day the milestone has been achieved; or (ii) the average Nasdaq Official Closing Price of the common stock (as reflected on Nasdaq.com) for the five trading days immediately prior to the day the milestone has been achieved. If Exicure will be required by Nasdaq rules to issue additional new shares for the Milestone Payment, which requires additional steps, such as approval of a shareholder's meeting, the parties will agree to extend the payment deadline by mutual consent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3&nbsp;&nbsp;&nbsp;&nbsp;Royalties; Annual Payments.** After the Parties have obtained Regulatory Approval of the Product, as additional consideration for the exclusive and non-exclusive

license granted to EXICURE under this Agreement, EXICURE shall pay to GPCR the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1&nbsp;&nbsp;&nbsp;&nbsp;**Royalty.** EXICURE shall pay ten percent (10%) of its global Net Sales of GPC- 100 or any combined and co-development Products using GPC-100 and its derivatives to GPCR as below, until occurrence of (i) expiration of all patents listed in Exhibit A.2, or (ii) the first approval of a Generic Product by Regulatory Authority, whichever is later on a country- by-country basis ("**Royalty Term**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2&nbsp;&nbsp;&nbsp;&nbsp;**EXICURE's Grant of license Under GPCR Technology.** Notwithstanding the foregoing Section 4.3.2, if EXICURE grants sublicenses or sells, assigns, transfers, and conveys its rights to GPCR Technology to a third party, EXICURE shall notify GPCR in accordance with Section 2.2, and GPCR may elect one of the following options for the payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To receive a portion of the License Income that EXICURE obtains from the third party licensee, in which case the aforementioned Milestone Payment and the Payment for GPCR Technology under Sections 4.2 and 4.3.1 will not be applicable; OR

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To resort to receive installment payments as provided in the Section 4.3.1 above, together with the Milestone Payment under Section 4.2.

If GPCR elects to receive a portion of the License Income (Section 4.3.2.(a)), the License Income will be distributed, within thirty (30) days after EXICURE receives such License Income, to GPCR at the following ratio:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Sixty percent (60%) if such assignment or license commenced before the Completion of ongoing phase 2 Clinical Trial((NCT05561751);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Fifty percent (50%) if such assignment or license commenced before the First dosing of the first patient in any new Clinical Trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Forty percent (40%) if the assignment or license commenced before the Receipt of first Marketing Authorization in the Territory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;Thirty percent (30%) if the assignment or license commenced after the Receipt of first Marketing Authorization in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4&nbsp;&nbsp;&nbsp;&nbsp;Exchange Rate.** Except for the circumstances stated in Section 4.1, net revenues recorded in any currency other than U.S. Dollars shall be converted to U.S. Dollars for purposes of calculating royalties at the rate of exchange published in the Wall Street Journal (New York Edition) for the last business day of the calendar year to which such Net Sales relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5&nbsp;&nbsp;&nbsp;&nbsp;Taxes; Withholding.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5.1&nbsp;&nbsp;&nbsp;&nbsp;The Upfront fee under Section 4.1 and milestone payment under Section 4.2 shall be exclusive of taxes, charges, levies, customs and/or any other duties, and EXICURE agrees to bear and be responsible for the payment of all such taxes, customs, and/or other duties or charges, which may be levied or assessed in connection with this Agreement. Any tax or charges required to be withheld by EXICURE under the laws of the Territory for the accounts of GPCR shall be promptly paid by EXICURE for and on behalf of GPCR to the appropriate governmental authority, and EXICURE shall use its reasonable best efforts to furnish GPCR

with proof of payment of such tax together with official or other appropriate evidence issued by the applicable government authority. EXICURE shall increase the payment to GPCR an amount to cover any such tax or other charges actually paid on GPCR's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5.2&nbsp;&nbsp;&nbsp;&nbsp;All payments other than the Upfront fee as contemplated in Section 4.1 and milestone payment in Section 4.2 above shall be inclusive of taxes. Any tax or charges required to be withheld by EXICURE under the laws of the Territory for the accounts of GPCR shall be paid by EXICURE for and on behalf of GPCR to the appropriate governmental authority, and EXICURE shall use its reasonable best efforts to furnish GPCR with proof of payment of such tax together with official or other appropriate evidence issued by the applicable government authority. EXICURE shall deduct any such tax or other charges actually paid on GPCR's behalf from the payment to GPCR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6&nbsp;&nbsp;&nbsp;&nbsp;Payment Method**; **Late Payment**. All payments due to GPCR under this Agreement will be made in U.S. Dollars by irrevocable Letter of Credit (L/C) at sight issued by reputable banks, and all payments due to GPCR under this Agreement will be made in USD. If GPCR does not receive payment of any sum due to it on or before the due date, late payment interest will thereafter accrue on the sum due to GPCR until the date of payment at the per monthly rate of one percent (1%) (or annum rate of twelve percent (12%)) over the then-current prime rate of the United States reported in The Wall Street Journal (U.S., Western Edition) or the maximum rate allowable by applicable laws, whichever is lower.

**5.&nbsp;&nbsp;&nbsp;&nbsp;INTELLECTUAL PROPERTY RIGHTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1&nbsp;&nbsp;&nbsp;&nbsp;Ownership.** EXICURE acknowledges and agrees that GPCR Technology shall at all times remain the property of GPCR. For the avoidance of doubt:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;all rights, title and interest in Improvements, including any improvement, enhancement, development, modification or adaptation made to GPCR Technology, shall vest in GPCR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;EXICURE is deemed to be granted, during the Term, the licenses to the Improvements, non-exclusive, fully paid up and royalty-free.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2&nbsp;&nbsp;&nbsp;&nbsp;Prosecution and Maintenance.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1&nbsp;&nbsp;&nbsp;&nbsp;GPCR shall be primarily responsible for all patent prosecution activities pertaining to GPCR Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2&nbsp;&nbsp;&nbsp;&nbsp;If GPCR decides to abandon or allow to lapse any patent that covers a Product, or discontinue any other patent prosecution activities in respect thereof in any country of the Territory, GPCR shall promptly inform EXICURE and EXICURE shall be given the opportunity to assume patent prosecution activities in respect thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.3&nbsp;&nbsp;&nbsp;&nbsp;EXICURE shall reimburse GPCR, not later than thirty (30) days after receiving an invoice from GPCR, for all reasonable out-of-pocket expenses incurred by GPCR in respect of patent prosecution activities for GPC-100. EXICURE shall reimburse GPCR, not later than thirty (30) days after receiving an invoice from GPCR, for 50% of all reasonable out-of-pocket expenses incurred by GPCR in respect of patent prosecution activities for the Combination Method. Invoices shall be submitted once in respect of each calendar quarter as promptly as practicable after the end of such quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3&nbsp;&nbsp;&nbsp;&nbsp;Improvements.** Each party must notify the other of any Improvements discovered or developed by it or on its behalf with respect to any of the GPCR Technology as soon as possible, and no later than sixty (60) business days from the discovery or development. GPCR will have and retain sole and exclusive title to all Improvements.

**6.&nbsp;&nbsp;&nbsp;&nbsp;GENERAL OBLIGATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1&nbsp;&nbsp;&nbsp;&nbsp;Information and Materials.** Each Party will provide to the other Party such information and materials as the Parties mutually agree to be necessary or useful to carry out the activities contemplated by this Agreement free of charge unless otherwise stated in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2&nbsp;&nbsp;&nbsp;&nbsp;Costs and Expenses.** Each Party will bear its own expenses performing its obligations under this Agreement, including the salaries of its personnel.

**7.&nbsp;&nbsp;&nbsp;&nbsp;REPRESENTATIONS, WARRANTIES AND COVENANTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1&nbsp;&nbsp;&nbsp;&nbsp;Mutual Representations and Warranties.** Each Party hereby represents and warrants to the other Party that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1&nbsp;&nbsp;&nbsp;&nbsp;it is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, and has full corporate power and authority and the legal right to own and operate its property and assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2&nbsp;&nbsp;&nbsp;&nbsp;it has the corporate power and authority and the legal right to enter into this Agreement and perform its obligations hereunder; it has taken all necessary corporate action on its part required to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder; and this Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid and binding obligation of such Party that is enforceable against it in accordance with its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3&nbsp;&nbsp;&nbsp;&nbsp;it has not entered into any agreement with any third party that is in conflict with the rights granted to the other Party under this Agreement, and has not taken any action that would in any way prevent it from granting the rights granted to the other Party under this Agreement, or that would otherwise materially conflict with or adversely affect the rights granted to the other Party under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.4&nbsp;&nbsp;&nbsp;&nbsp;its performance and execution of this Agreement will not result in a breach of any other contract to which it is a party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of EXICURE.** EXICURE represents and warrants to GPCR that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;it is duly organized, validly existing, and in good standing under the Laws of its jurisdiction of incorporation, organization, or chartering, and has the full power and authority to enter into this Agreement and to perform its obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the execution of this Agreement by such Party's representative whose signature is set forth at the end hereof has been duly authorized by all necessary organizational action of such Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;when executed and delivered by such Party, this Agreement constitutes the legal, valid, and binding obligation of such Party, enforceable against such Party in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of GPCR.** GPCR represents and warrants to EXICURE that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;it is duly organized, validly existing, and in good standing under the Laws of its jurisdiction of incorporation, organization, or chartering, and has the full power and authority to enter into this Agreement and to perform its obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the execution of this Agreement by such Party's representative whose signature is set forth at the end hereof has been duly authorized by all necessary organizational action of such Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;when executed and delivered by such Party, this Agreement constitutes the legal, valid, and binding obligation of such Party, enforceable against such Party in accordance with its terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;it has sufficient rights in and to the GPCR Technology to grant the rights set forth in this Agreement to EXICURE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4&nbsp;&nbsp;&nbsp;&nbsp;Disclaimer.** UNLESS OTHERWISE STATED IN THIS AGREEMNT, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR OTHER DAMAGES SUFFERED BY THE OTHER PERSON ARISING IN ANY WAY OUT OF OR UNDER THIS AGREEMENT, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

**8.&nbsp;&nbsp;&nbsp;&nbsp;CONFIDENTIALITY AND PUBLICATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1&nbsp;&nbsp;&nbsp;&nbsp;Treatment of Confidential Information.** The Parties agree that during the term of this Agreement, and for a period of five (5) years after this Agreement terminates, a Party receiving Confidential Information of the other Party will (i) maintain in confidence such Confidential Information to the same extent such Party maintains its own proprietary industrial information, and in any event not less than reasonable care, (ii) not disclose such Confidential Information to any third party without prior written consent of the other Party and (iii) not use such Confidential Information for any purpose except those permitted by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2&nbsp;&nbsp;&nbsp;&nbsp;Permitted Disclosures.** The confidentiality obligations under this Section 8 shall not apply to the extent that a Party is required to disclose information by applicable law, regulation or order of a governmental agency or a court of competent jurisdiction; provided,

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however, that such Party shall provide written notice thereof to the other Party, consult with the other Party with respect to such disclosure and provide the other Party sufficient opportunity to object to any such disclosure or to request confidential treatment thereof.

**9.&nbsp;&nbsp;&nbsp;&nbsp;INDEMNIFICATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1&nbsp;&nbsp;&nbsp;&nbsp;By GPCR.** GPCR shall indemnify and hold harmless EXICURE, EXICURE's Affiliates and their directors, officers, employees and agents, from and against all losses, liabilities, damages and expenses, including reasonable attorneys' fees and costs, resulting from

any claims, demands, actions or other proceedings by any third party to the extent resulting from (a) the breach of any representation, warranty or covenant by GPCR under this Agreement

(b) the use by GPCR of the Confidential Information of EXICURE or its Affiliates or sublicensees, or (c) the use of GPCR Technology or Product violates, infringes upon, or misappropriates the intellectual property rights of any third party, in each case except to the extent such claim, demand, action or other proceeding is caused by the negligent or willful misconduct of EXICURE or any of its directors, officers, employees or agents, or affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2&nbsp;&nbsp;&nbsp;&nbsp;By EXICURE.** EXICURE shall indemnify and hold harmless GPCR and its directors, officers, employees and agents, from and against all losses, liabilities, damages, expenses including reasonable attorneys' fees and costs resulting from any claims, demands, actions or other proceedings by any third party to the extent resulting from (a) the breach of any representation, warranty or covenant by EXICURE under this Agreement; or (b) the use by EXICURE of the Confidential Information of GPCR, in each case except to the extent such claim, demand, action or other proceeding is caused by the negligent or willful misconduct of GPCR or any of its directors, officers, employees or agents, or affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3&nbsp;&nbsp;&nbsp;&nbsp;Process for Indemnification.** A Party's obligation to defend, indemnify and hold harmless the other Party under this Article 9 shall be conditioned upon the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A Party seeking indemnification under this Article 9 (the "Indemnitee") shall give prompt written notice of the claim to the other Party (the "Indemnitor"). Failure to promptly notify the Indemnitor of any such claim shall not relieve the Indemnitor of any such duty to so indemnify except to the extent that the Indemnitor can demonstrate actual loss and prejudice as a result of such failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Party shall furnish promptly to the other Party copies of all papers and official documents received in respect of any losses and claims. Failure to promptly furnish the other Party with such papers and official documents shall not relieve the other Party of any duty to indemnify except to the extent that the other Party can demonstrate actual loss and prejudice as a result of such failure. The Indemnitee shall cooperate as requested by the Indemnitor in the defense against any losses and claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Indemnitee shall have the right to assume and control the defense of the indemnification claim, including any settlement of such claim, at its own expense with counsel selected by the Indemnitee and reasonably acceptable to the Indemnitor. The Indemnitor may participate in and monitor such defense with counsel of its own choosing at its sole expense. The Indemnitee shall not settle or

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compromise the indemnification claim in any manner which would have an adverse effect on the Indemnitor's interests without the prior written consent of the Indemnitor, which consent, in each case, shall not be unreasonably withheld, delayed or conditioned. The Indemnitor shall reasonably cooperate with the Indemnitee at the Indemnitee's expense and shall make available to the Indemnitee all pertinent information under the control of the Indemnitor.

**10.&nbsp;&nbsp;&nbsp;&nbsp;TERM AND TERMINATION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1&nbsp;&nbsp;&nbsp;&nbsp;Term.** This Agreement shall commence on the Effective Date and, unless earlier terminated by mutual consent or pursuant to Section 10.2 below, shall remain in effect for the Royalty Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2&nbsp;&nbsp;&nbsp;&nbsp;Termination.** Either Party may terminate this Agreement for the other Party's material breach if such breach remains uncured for one hundred and twenty (120) days after receipt by the breaching Party of written notice from non-breaching party, and the non- breaching party may claim for compensation for the uncured breach. Furthermore, if either Party initiates insolvency, dissolution, winding up, liquidation, a petition for reorganization, or bankruptcy proceedings, or is the subject of involuntary bankruptcy, dissolution, winding up, liquidation, or reorganization proceedings that are not dismissed within sixty (60) days, then the other Party shall have the right to immediately terminate this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3&nbsp;&nbsp;&nbsp;&nbsp;Rights Upon Expiration or Termination.** Neither Party shall have any further rights or obligations upon the expiration of this Agreement. Upon such expiration or termination, the license granted in this Agreement shall be terminated and any sublicenses granted by EXICURE shall also be terminated. GPCR shall be entitled to royalties as set forth in Article 4 of this Agreement with respect to any Net Sales which may be generated from the sale of Products prior to the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4&nbsp;&nbsp;&nbsp;&nbsp;Survival.** Expiration or termination of this Agreement will not relieve the Parties of any obligations accruing before the effective date of expiration or termination. The rights and obligations of the Parties set forth in Section 1 (Definitions), Section 4 (Payments and Royalties), Section 5 (Intellectual Property Rights), Section 7 (Representations, Warranties and Covenants), Section 8 (Confidentiality and Publication), Section 9 (Indemnification), Section 10 (Term and Termination), Section 11 (Assignment; Successors),), and Section 12 (General Provisions), and any right, obligation, or required performance of the Parties under this Agreement that, by its express terms or nature and context is intended to survive expiration or termination of this Agreement, will survive any such expiration or termination.

**11.&nbsp;&nbsp;&nbsp;&nbsp;ASSIGNMENT; SUCCESSORS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1&nbsp;&nbsp;&nbsp;&nbsp;Assignment.** Any and all assignments of this Agreement or any rights granted hereunder by EXICURE without the prior written consent of GPCR are void except (i) to an Affiliate of EXICURE or (ii) as expressly permitted hereunder. Notwithstanding the foregoing, consent of GPCR shall not be required in connection with the sale of all or substantially all of the assets of EXICURE pertaining to this Agreement or the acquisition or merger of all of the business of EXICURE pertaining to this Agreement whereby

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stockholders of EXICURE prior to such acquisition continue to be the shareholders in the merged entity or in the acquiring entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2&nbsp;&nbsp;&nbsp;&nbsp;Binding Upon Successors and Assigns.** Subject to the limitations on assignment herein, this Agreement shall be binding upon and inure to the benefit of any successors in interest and assigns of the Parities. Any such successor or assignee of EXICURE's interest shall expressly assume in writing the performance of all the terms and conditions of this Agreement to be performed by EXICURE.

**12.&nbsp;&nbsp;&nbsp;&nbsp;GENERAL PROVISIONS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1&nbsp;&nbsp;&nbsp;&nbsp;Strategic Relationship.** The relationship between GPCR and EXICURE is strategic relationship. GPCR and EXICURE are not joint venturers, partners, principal and

agent, master and servant, employer or employee, and have no other relationship other than a strategic relationship. GPCR and EXICURE shall have no power to bind or obligate each other in any manner, other than as is expressly set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement; Modification.** This Agreement set forth the entire agreement and understanding between the Parties as to the subject matter hereof and supersede all prior or contemporaneous agreements or understanding as between the Parties relating to their subject matter. There shall be no amendments or modifications to this Agreement, except by a written document which is signed by both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.3&nbsp;&nbsp;&nbsp;&nbsp;Governing Law; Dispute Resolution.** This Agreement shall be governed by and construed under the laws of Singapore without regard to conflicts of laws principles. Any and all actions or proceedings seeking to enforce any provision of, or based on any right arising out of this Agreement shall be settled by arbitration in Singapore under the Rules of Arbitration of the International Chamber of Commerce. The arbitration shall be conducted by three (3) arbitrators (the "Arbitral Tribunal") and the language of the arbitration shall be English. The interim and/or final awards rendered by the Arbitral Tribunal shall be final and binding on the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.4&nbsp;&nbsp;&nbsp;&nbsp;Headings.** The headings for each article and section in this Agreement have been inserted for convenience of reference only and are not intended to limit or expand on the meaning of the language contained in the particular article or section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.5&nbsp;&nbsp;&nbsp;&nbsp;Severability.** Should any one or more of the provisions of this Agreement be held invalid or unenforceable by a court of competent jurisdiction, it shall be considered severed from this Agreement and shall not serve to invalidate the remaining provisions thereof. The Parties shall make a good faith effort to replace any invalid or unenforceable provision with a valid and enforceable one such that the objectives contemplated by them when entering this Agreement may be realized. If the Parties fail to reach a modified agreement within sixty (60) days after the relevant provision is held invalid or unenforceable, then the dispute shall be resolved in accordance with the procedures set forth in Section 12.3. While the dispute is pending resolution, this Agreement shall be construed as if the provision were deleted by agreement of the Parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.6&nbsp;&nbsp;&nbsp;&nbsp;No Waiver.** Any delay in enforcing a Party's rights under this Agreement or any waiver as to a particular default or other matter shall not constitute a waiver of such Party's rights to the future enforcement of its rights under this Agreement, excepting only as to an express written and signed waiver signed by the Party against whom such waiver is being enforced as to a particular matter for a particular period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.7&nbsp;&nbsp;&nbsp;&nbsp;Name.** Whenever there has been an assignment or a license, or sublicense by EXICURE as permitted by this Agreement, the reference to "EXICURE" as used in this Agreement shall also include and refer to, if appropriate, such assignee, licensee or sublicensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.8&nbsp;&nbsp;&nbsp;&nbsp;Notices.** Any notices required by this Agreement shall be in writing, shall specifically refer to this Agreement and shall be sent by registered or certified airmail, postage prepaid, or by e-mail or facsimile, or by overnight courier, postage prepaid and shall be forwarded to the respective addresses set forth below unless subsequently changed by written notice to the other Party:

**To GPCR:**

Nakseongdae R&D Center, 38, Nakseongdae-ro, Gwanak-gu, Seoul 08790 Korea Attention: Jaehyuk Imm, CBO

E-mail: jaehyuk.imm@gpcr.co.kr

**To EXICURE:**

2430 N. Halsted St. Chicago, IL USA Attention:

E-mail:

Notice shall be deemed to have been delivered (i) in the case of personal delivery or delivery by confirmed facsimile, on the date of such delivery (ii) in the case of an internationally-recognized overnight courier, on the third business day following such mailing; and (iii) where sent by email, on the date that the email is received. However, if the time of deemed receipt of any notice is not before 5:30 p.m. local time on a business day at the address of the recipient, it is deemed to have been received at the commencement of business on the next business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.9&nbsp;&nbsp;&nbsp;&nbsp;Force Majeure.** Each Party shall be excused from the performance of its obligations under this Agreement to the extent that such performance is prevented by force majeure and the nonperforming Party (i) promptly provides notice of the prevention to the other Party, and (ii) makes its best efforts to mitigate the consequences of that force majeure. Such excuse shall be continued so long as the condition constituting force majeure continues and the nonperforming Party takes reasonable efforts to remove the condition. For purposes of this Agreement, force majeure shall include conditions beyond the reasonable control of the nonperforming Party, including without limitation, an act of God or terrorism, involuntary compliance with any regulation, law or order of any government, war, civil commotion, epidemic, failure or default of public utilities or common carriers, destruction of production facilities or materials by fire, earthquake, storm or like catastrophe. Notwithstanding the

------

foregoing, a Party shall not be excused from making payments due prior to occurrence of force majeure events hereunder. If a force majeure persists for more than ninety (90) days, then the Parties will discuss in good faith the modification of the Parties' obligations under this Agreement in order to mitigate the delays caused by such force majeure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.10&nbsp;&nbsp;&nbsp;&nbsp;Counterparts.** This Agreement may be executed in counterparts, each of which shall be deemed to be an original and together shall be deemed to be one and the same agreement.

[*signature page follows*]

IN WITNESS WHEREOF, the Parties hereto have each caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

**GPCR Therapeutics, Inc.&nbsp;&nbsp;&nbsp;&nbsp;Exicure, Inc.**

By:&nbsp;&nbsp;&nbsp;&nbsp;By:&nbsp;&nbsp;&nbsp;&nbsp;

Name: Dongseung Seen&nbsp;&nbsp;&nbsp;&nbsp;Name: Andy Yoo

Title: CEO&nbsp;&nbsp;&nbsp;&nbsp;Title: CEO

------

**Exhibit A.1 GPC-100 patents**

---

| | | |
|:---|:---|:---|
| **Jurisdiction** | **Application No.** | **Regis./Pub. No.** |
| United States | 12/263,671 | 8372849 |
| Canada | 2720229 | 2720229 |
| Taiwan | 097142682 | I444188 |
| China | 200810179694.4 | 101565404 |
| Hong Kong | 10104050.7 | HK1138269 |
| Philippines | 1-2010-502395 | 1-2010-502395 |
| Europe | 08874003.0 | 2268635 |
| Austria | 08874003.0 | 2268635 |
| Belgium | 08874003.0 | 2268635 |
| Bulgaria | 08874003.0 | 2268635 |
| Croatia | 08874003.0 | 2268635 |
| Cyprus | 08874003.0 | 2268635 |
| Czech Republic | 08874003.0 | 2268635 |
| Denmark | 08874003.0 | 2268635 |
| Estonia | 08874003.0 | 2268635 |
| Finland | 08874003.0 | 2268635 |
| France | 08874003.0 | 2268635 |
| Germany | 08874003.0 | 2268635 |
| Greece | 08874003.0 | 2268635 |
| Hungary | 08874003.0 | 2268635 |
| Iceland | 08874003.0 | 2268635 |
| Ireland | 08874003.0 | 2268635 |
| Italy | 08874003.0 | 2268635 |
| Latvia | 08874003.0 | 2268635 |
| Lithuania | 08874003.0 | 2268635 |
| Luxembourg | 08874003.0 | 2268635 |
| Malta | 08874003.0 | 2268635 |
| Monaco | 08874003.0 | 2268635 |
| Norway | 08874003.0 | 2268635 |
| Poland | 08874003.0 | 2268635 |
| Portugal | 08874003.0 | 2268635 |
| Romania | 08874003.0 | 2268635 |
| Slovakia | 08874003.0 | 2268635 |
| Slovenia | 08874003.0 | 2268635 |
| Spain | 08874003.0 | 2268635 |

---

------

---

| | | |
|:---|:---|:---|
| Sweden | 08874003.0 | 2268635 |
| Switzerland | 08874003.0 | 2268635 |
| The Netherlands | 08874003.0 | 2268635 |
| Turkey | 08874003.0 | 2268635 |
| United Kingdom | 08874003.0 | 2268635 |
| New Zealand | 588989 | 588989 |
| Korea | 10-2010-7025309 | 10-1579999 |
| Singapore | 201007380-7 | 165610 |
| Australia | 2008355098 | 2008355098 |
| Japan | 2011-504995 | 5661607 |
| South Africa | 2010/08262 | 2010/08262 |
| Indonesia | W-00201003986 | IDP000035619 |
| India | 3842/KOLNP/2010 | 280579 |
| Eurasia | 201071221 | 019289 |
| Armenia | 201071221 | 019289 |
| Azerbaijan | 201071221 | 019289 |
| Belarus | 201071221 | 019289 |
| Kyrgyzstan | 201071221 | 019289 |
| Kazakhstan | 201071221 | 019289 |
| Moldova | 201071221 | 019289 |
| Russia | 201071221 | 019289 |
| Tajikistan | 201071221 | 019289 |
| Turkmenistan | 201071221 | 019289 |
| United States | 12/617,238 | 9023834 |
| United States | 14/502,144 | 9375406 |
| Taiwan | 104118507 | I666216 |
| Eurasia | 201790651 | 031090 |
| Armenia | 201790651 | 031090 |
| Azerbaijan | 201790651 | 031090 |
| Belarus | 201790651 | 031090 |
| Kyrgyzstan | 201790651 | 031090 |
| Kazakhstan | 201790651 | 031090 |
| Russia | 201790651 | 031090 |
| Tajikistan | 201790651 | 031090 |
| Turkmenistan | 201790651 | 031090 |
| Japan | 2017-518264 | 6581654 |
| Japan | 2019-155134 | 6844870 |

---

------

---

| | | |
|:---|:---|:---|
| Korea | 10-2017-7010790 | 10-2589811 |
| China | 201580023441.6 | Pending |
| China | 202311449008.1 | Pending |
| Europe | 15846698.7 | Pending |
| Korea | 10-2023-7034758 | Pending |
| Hong Kong | 17113974.4 | Pending |

---

**Exhibit A.2 Combination Method patent**

---

| | | |
|:---|:---|:---|
| **Jurisdiction** | **Application No.** | **Regis./Pub. No.** |
| United States | 16/224,450 | 10709763 |
| United States | 16/885,196 | 11857600 |
| Taiwan | 107145764 | I818938 |
| Japan | 2020-535043 | 7517986 |
| Australia | 2018388302 | Allowed, No. TBD |
| Brazil | 112020012075-8 | pending |
| Brazil | 122022025463-2 | pending |
| Canada | 3086337 | pending |
| China | 201880089801.6 | pending |
| EP | 18892135.7 | pending |
| EP | 21174644.1 | pending |
| Hong Kong | 62021029872.0 | pending |
| Hong Kong | 42022052211.4 | pending |
| Japan | 2020-535043 | pending |
| Japan | 2024-074184 | pending |
| Korea | 10-2020-7019080 | pending |
| United States | 17/233,359 | pending |
| Argentina | P200101381 | pending |
| Australia | 2020278977 | pending |
| Brazil | 112021022887-0 | pending |
| Canada | 3139912 | pending |
| China | 202080047920.2 | pending |
| EP | 20809706.3 | pending |
| Hong Kong | 62022061032.8 | pending |
| Japan | 2021-568550 | pending |
| Korea | 10-2021-7040829 | pending |
| Taiwan | 109116108 | pending |
| United States | 17/609,777 | pending |

---

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PCT PCT/US2023/024983 pending <br> <u>PCT</u> <u>PCT/IB2024/055558</u> <u>pending</u>

## Exhibit 10.5

**Exhibit 10.5**

***Executed Version***

February 1, 2025

Mr. Andy Yoo

Exicure, Inc.

2430 N. Halsted St.

Chicago, IL 60614 USA

Dear Mr. Yoo:

This agreement summarizes the terms and conditions upon which Alta Companies Ltd. ("ALTA") will provide Paul Kang as a Senior Advisor and assist Exicure, Inc. and affiliates (the "COMPANY") with respect to corporate development, capital raising, and mergers/acquisitions (the "PROJECT").<br>Compensation to ALTA w.r.t. the PROJECT (and in lieu of bonus and termination fees per PAUL KANG's Exicure CEO employment agreement) shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The COMPANY agrees to pay ALTA an initial fee of $99,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The COMPANY shall pay ALTA $12,500 at the end of each month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prior to closing any transactions involving such parties that were introduced by ALTA or Paul Kang to the COMPANY (or where ALTA or Paul Kang were involved in discussions), the COMPANY agrees to determine ALTA's involvement on mutually agreeable terms prior to closing any such transaction.<br>

Further, the Company and Paul Kang mutually release each other from any and all past liability and claims of any kind whatsoever, regardless of whether such claims are known at the time of the release.<br>ALTA/Paul Kang agrees to continue his responsibilities and duties that can make a significant impact on the COMPANY's growth and strategy. This work includes assistance with potential mergers & acquisitions, capital raises, investor relations, and other consulting activities as deemed necessary by the COMPANY's CEO, *provided however*, that such assistance is consistent with this letter agreement and applicable law. <br>The COMPANY will timely apprise ALTA of material matters relevant to the PROJECT. The COMPANY recognizes, agrees and confirms that ALTA and Paul Kang (i) will be using and relying upon information available from the COMPANY and generally recognized public sources (the "Information"), without having independently verified the same, and; (ii) does not assume responsibility for the accuracy or completeness of such Information nor of materials disseminated to third parties on the COMPANY's behalf.<br>The COMPANY shall indemnify and hold harmless ALTA, its affiliates, and their personnel against any

------

claims, liabilities, costs and expenses (including without limitation, attorneys' fees and the time of ALTA personnel involved) brought against, paid or incurred by ALTA, its affiliates, and their personnel at any time and in anyway arising out of or relating to ALTA's services under this letter agreement, except to the extent finally determined to have resulted from the gross negligence or willful misconduct of ALTA employees that were not known to the COMPANY prior to execution hereof.<br>Each of the parties to this agreement agrees to keep any information with respect to each other and this letter agreement confidential and not make use thereof except as may be required by applicable law or judicial process.<br>This agreement shall remain in effect for one year and shall renew each year unless cancelled in writing by either party with 30-days written notice. The provisions concerning confidentiality, indemnification, contribution and the COMPANY's obligation to pay fees and reimburse expenses contained herein shall survive any such termination.<br>If the company is dissatisfied with the work and performance, despite efforts to remedy the situation, it can terminate this agreement within the first year by giving a 30-day written notice.<br>The governing law and venue for this letter agreement shall be the State of New York, U.S.A. without reference to principles of conflicting law.

<br>We look forward to working with you and your colleagues.<br>

<u>/s/ Paul Kang&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;&nbsp;&nbsp;

Paul Kang

*President*

ACCEPTED and AGREED to for the COMPANY:

<u>/s/ Andy Yoo&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;&nbsp;&nbsp;

Andy Yoo

CEO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

## Exhibit 31.1

**Exhibit 31.1** 

**CERTIFICATIONS** 

I, Andy Yoo, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Exicure, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: June 27, 2025

---

| |
|:---|
| /s/ Andy Yoo |
| Andy Yoo |
| Chief Executive Officer |
| *(Principal Executive Officer)* |

---

## Exhibit 31.2

**Exhibit 31.2** 

**CERTIFICATIONS** 

I, Seung Ik Baik, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Exicure, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: June 27, 2025

---

| |
|:---|
| /s/ Seung Ik Baik |
| Seung Ik Baik |
| Chief Financial Officer |
| *(Principal Financial Officer)* |

---

## Exhibit 32.1

**Exhibit 32.1** 

**SECTION 1350 CERTIFICATIONS\*** 

Pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. § 1350), Andy Yoo, Chief Executive Officer of Exicure, Inc. (the "Company"), and Seung Ik Baik, Chief Financial Officer of the Company, each hereby certifies that, to the best of his or her knowledge:

1. The Company's Quarterly Report on Form 10-Q for the period ended March 31, 2025, to which this Certification is attached as Exhibit 32.1 (the "Periodic Report"), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and

2. The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: June 27, 2025

**IN WITNESS WHEREOF**, the undersigned have set their hands hereto as of the 27<sup>th</sup> day of June, 2025.

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| | |
|:---|:---|
| /s/ Andy Yoo | /s/ Seung Ik Baik |
| Andy Yoo | Seung Ik Baik |
| Chief Executive Officer | Chief Financial Officer |
| *(Principal Executive Officer)* | *(Principal Financial Officer)* |

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\* This certification accompanies the Quarterly Report on Form 10-Q, to which it relates is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Exicure, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.

<br>