aibioXilio Therapeutics gets Nasdaq notice over stockholders' equity below $10.0 million
Tickers XLO
Nasdaq says Xilio reported stockholders' equity of $7,069,000 at June 30, 2025, below the $10.0 million minimum for the Global Select Market. The company has until October 6, 2025 to submit a plan, and it remains out of compliance with the $1.00 minimum bid price rule.
Key facts
- Company
- Xilio Therapeutics, Inc. (NASDAQ: XLO)
- News type
- Listings
- Primary source
- Xilio Therapeutics, Inc. Form 8-K filed August 28, 2025 (SEC EDGAR)
Xilio Therapeutics, Inc. (Nasdaq: XLO) received a Nasdaq deficiency letter on August 22, 2025, because its stockholders' equity fell below the exchange's minimum. The company disclosed the letter in a Form 8-K filed August 28, 2025. The same filing updates an earlier Nasdaq notice about the company's bid price, which the company has not yet cured.
The stockholders' equity deficiency
The letter came from the Listing Qualifications Department of the Nasdaq Stock Market, LLC. It says Xilio is not in compliance with the requirement to maintain at least $10.0 million in stockholders' equity under Nasdaq Listing Rule 5450(b)(1)(A), which applies to continued listing on the Nasdaq Global Select Market. The letter relies on the equity figure the company reported in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025: $7,069,000.
The company says the letter has no immediate effect on the listing of its common stock. Under Nasdaq Listing Rule 5810(c)(2)(C), Xilio has 45 calendar days, or until October 6, 2025, to submit a plan to regain compliance. If Nasdaq accepts the plan, it can grant an extension of up to 180 calendar days from the date of the letter. The company may instead apply to move its securities to The Nasdaq Capital Market, if it meets that market's continued listing requirements.
The bid price notice still open
The company received a separate letter on April 4, 2025 for failing to keep its bid price at the $1.00 minimum. Its initial 180-day period to regain compliance expires on October 1, 2025. After that, it may be eligible for an additional 180-day period only if it transfers to The Nasdaq Capital Market, meets that market's market value of publicly held shares requirement and other initial listing standards, and gives written notice that it intends to cure the deficiency. The 8-K says the company remains out of compliance with the bid price requirement. It says only that it "is continuing to evaluate available options" to regain compliance.
Cash and the going concern warning
The annual report filed March 11, 2025 shows the company's cash position is tight relative to its losses. It reported cash and cash equivalents of $55.3 million as of December 31, 2024, and net losses of $58.2 million for 2024 and $76.4 million for 2023. Its accumulated deficit was $383.8 million at year-end 2024.
The report says the company expected its year-end cash, together with $52.0 million in upfront payments received in the first quarter of 2025 under its collaboration with AbbVie, to fund operations into the first quarter of 2026. Its auditor's report for 2024 and 2023 contains a going-concern paragraph, which says recurring losses from operations raise substantial doubt about the company's ability to continue as a going concern. The company says it will need substantial additional capital to continue its operations.
The pipeline and the partners
Xilio describes itself as a clinical-stage biotechnology company developing tumor-activated, or masked, immuno-oncology therapies. Its most advanced product candidate, vilastobart (XTX101), is a tumor-activated anti-CTLA-4 antibody. The company is testing it with atezolizumab in a Phase 2 trial in patients with microsatellite stable colorectal cancer, under a co-funded clinical trial collaboration with F. Hoffmann-La Roche Ltd.
The company reported initial Phase 2 proof-of-concept data for that combination in January 2025, at a 100 mg dose of vilastobart every six weeks. The company calls those results proof-of-concept data and says it plans to seek partners to expand development beyond the initial trial. The company is also developing XTX301, a tumor-activated interleukin 12 therapy, in a Phase 1 trial, under an exclusive license agreement with Gilead Sciences, Inc. entered into in the first quarter of 2024.
The 8-K was signed by Caroline Hensley, Chief Legal Officer.