Vyant Bio, Inc. (“Vyant Bio”, “Company”) (Nasdaq: VYNT) is an
innovative biotechnology company reinventing drug discovery for
complex neurodevelopmental and neurodegenerative disorders. The
Company’s central nervous system (“CNS”) drug discovery platform
combines human-derived organoid models of brain disease, scaled
biology, and machine learning. Today, Vyant Bio expects to file its
Form 10-Q for the First Quarter 2022 with the Securities and
Exchange Commission and will report its First Quarter 2022
highlights and business updates this afternoon in a conference call
and webcast scheduled for 4:30 pm ET.
“During the first quarter of 2022, we progressed
our scientific work by using our proprietary drug discovery
platform centered on human iPSC-derived neurospheroids to unveil
novel targets and potentially disease-modifying therapeutics to
treat patients suffering from severe neurodevelopmental and
neurodegenerative diseases. We are validating important data that
we believe will demonstrate our ability to de-risk the selection of
therapeutics that can rescue a disease phenotype. We believe
current preclinical models are not sufficiently predictive, and
many current therapies for CNS disorders only address the symptoms
and do not reverse the effects of neurological diseases. Our focus
during the first 90 days of 2022 was to progress our platform
validation efforts to advance our CNS programs that are designed to
identify disease-modifying therapeutics, consistent with our plans
and prior disclosures to our shareholders,” stated Jay Roberts, the
Company’s Chief Executive Officer.
“As we highlighted in our last earnings
conference call, we believe our focus on complex neurodevelopmental
and neurodegenerative disorders addresses significant unmet medical
needs, and will lead to the identification of important, disease
modifying therapies for major causes of death and disability
worldwide. Our Rett patient-derived neural spheroids show a robust
and reproducible disease-specific phenotype that can be quantified
in an unbiased manner across dozens of endpoints. By phenotypic
screening of our Rett neural spheroids, we identified VYNT-0126
which has consistently shown a dose-dependent unique rescue of the
RTT functional phenotype with a differentiated mechanism of action
from other Rett syndrome clinical candidates. Our ongoing work on
CDKL5 and familial Parkinson’s disease has further established that
our discovery platforms represent a new, unique robust model for
human-first CNS drug discovery” stated Dr. Robert Fremeau, Chief
Scientific Officer of Vyant Bio.
FIRST QUARTER 2022 FINANCIAL
RESULTS
Cash and cash equivalents totaled $16.4 million
as of March 31, 2022. The Company implemented two new vehicles to
facilitate the raising of additional equity capital at the
Company’s option with the finalization of the Lincoln Park Equity
line of credit allowing access to raise up to $15 million, as well
as signing a $14.5 million ATM with Canaccord Genuity. The
Company’s current cash balances, future proceeds from the sale of
vivoPharm and future proceeds from the equity line of credit and
ATM are expected to fund operations well into 2023.
During the first quarter of 2022, the Company
continued the process of divesting the vivoPharm business which is
expected to complete in 2022. Therefore, the vivoPharm business is
classified as a “held-for-sale” asset, and its financial
information as “discontinuing operations”.
The Company’s loss from continuing operations
aggregated $4.4 million in the first quarter of 2022 and included
non-cash depreciation and amortization as well as stock-based
compensation expenses of $98 thousand and $278 thousand,
respectively, and one-time severance charges of $437 thousand.
Discontinuing operations net loss for the March 31, 2022 quarter
aggregated $4.8 million and included a non-cash impairment charge
of $4.3 million resulting from changed market conditions for
contract research organizations from December 31, 2021 to March 31,
2022.
Total revenue from continuing operations
increased 49.3%, or $100 thousand, to $303 thousand for the three
months ended March 31, 2022, as compared with $222 thousand for the
three months ended March 31, 2021.
Cost of goods sold – service from continuing
operations totaled $38 thousand and $64 thousand, respectively, for
the three months ended March 31, 2022 and 2021, resulting in a cost
of goods sold of 40% and 66%, respectively, of service revenue.
Cost of goods sold – product costs decreased by
12%, or $48 thousand to $348 thousand for the three months ended
March 31, 2022, as compared with $396 thousand for the three months
ended March 31, 2021.
Research and development expenses increased by
89%, or $731 thousand, to $1.6 million for the three months ended
March 31, 2022 from $820 thousand for the three months ended March
31, 2021. This increase is principally due a $336 thousand increase
in payroll-related and consulting expenses, a $315 thousand
increase in research and development activities at our Maple Grove
facility, and $48 thousand related to moving to a new facility in
California.
Selling, general and administrative expenses
increased by 128%, or $1.5 million, to $2.8 million for the three
months ended March 31, 2022, as compared with $1.2 million for the
three months ended March 31, 2021. The 2021 period reflects the
Company as a privately-held company whereas the 2022 period reflect
the Company as a publicly-held company. The quarter ended March 31,
2022 includes incremental $564 thousand of payroll-related
expenses, including one-time contractual severance benefits for two
former employees of $437 thousand. The Company incurred incremental
professional services fees of $472 thousand in the first quarter of
2022 as compared with the same prior-year period related to
accounting, audit and other professional services and incurred $418
thousand of additional insurance expense.
Vyant Bio’s Conference Call and Webcast
and Information
Vyant Bio’s management will host a conference
call on Monday, May 16, 2022 at 4:30pm ET to discuss the first
quarter 2022 results and provide strategic business updates as well
as answer questions. Event information is below:
Event: |
Investor Conference Call and Webcast for the First Quarter
2022 |
Date: |
Monday, May 16, 2022 |
Time: |
4:30pm ET |
Dial |
In: Toll Free: 1.888.506.0062 Conference ID:
109432 |
Webcast: |
https://www.webcaster4.com/Webcast/Page/2756/45406 |
The live event will be recorded and available
for replay. The conference call and webcast details are also
included inside the Investors section of the Vyant Bio corporate
website at www.vyantbio.com.
The event will be recorded and archived. Replay information is
below:
Conference Call Replay Information:
Toll Free: 1.877.481.4010 Replay Passcode: 45406
Webcast Replay Information:
https://ir.vyantbio.com/news-events/ir-calendar
ABOUT VYANT BIO, INC.
Vyant Bio, Inc. (“Vyant Bio” or the “Company”)
(Nadsaq:VYNT), is an innovative biotechnology company focused on
identifying unique biological targets and novel and repurposed
therapeutics. Vyant Bio has built a platform of therapeutics
seeking to treat neurodevelopmental and neurodegenerative diseases,
with current programs targeting Rett Syndrome (“Rett”), CDKL5
Deficiency Disorders (“CDD”), and Parkinson’s Disease. The
Company’s approach to drug discovery integrates human-derived
biology with artificial intelligence and machine learning
technologies to de-risk candidate selection, with the goal of
improving the potential effectiveness of drugs discovered earlier
in the development cycle. Vyant Bio’s management believes that drug
discovery needs to progressively shift to more efficient methods as
the widely used models for predicting safe and effective drugs have
under-performed, as evidenced by the significant time and cost of
bringing novel drugs to market. By combining sophisticated data
science capabilities with highly functional human cell derived
disease models, Vyant Bio seeks to leverage its current ability to
screen and test therapeutic candidates, and create a unique
approach to assimilating data that supports decision making
iteratively throughout the discovery phase of drug development to
identify both novel and repurposed CNS therapeutic candidates.
For more information, please visit or follow Vyant Bio
at:Internet:
www.vyantbio.comLinkedIn:
https://www.linkedin.com/company/vyant-bioTwitter:
@VyantBio Forward Looking Statements:
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements pertaining to Vyant Bio, Inc.’s
expectations regarding future financial and/or operating results,
the efficacy of our drug screening and discovery process, and
potential for our services, future revenues or growth in this press
release constitute forward-looking statements.
Any statements that are not historical fact
(including, but not limited to, statements that contain words such
as “will,” “believes,” “plans,” “anticipates,” “expects,” and
“estimates”) should also be considered to be forward-looking
statements. Forward-looking statements involve risks and
uncertainties, including, without limitation, risks inherent in our
attempts to discover drug candidates, partner with pharmaceutical
and other biotechnology companies, achieve profitability, adapt to
the global coronavirus pandemic, raise capital to meet our
liquidity needs, and other risks discussed in the Vyant Bio, Inc.
Form 10-K for the year ended December 31, 2021, and any subsequent
filings with the Securities and Exchange Commission. These
forward-looking statements speak only as of the date hereof. Vyant
Bio disclaims any obligation to update these forward-looking
statements.
Investor Contact:Jennifer K.
Zimmons, PhD, MBAInvestor RelationsZimmons International
Communications, Inc.Email: jzimmons@zimmonsic.comPhone:
+1.917.214.3514
###
Source: Vyant Bio, Inc.
Vyant Bio,
Inc.Condensed Consolidated Balance
Sheets(unaudited)(Shares and USD
in Thousands)
|
|
March 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
16,440 |
|
|
$ |
20,608 |
|
Trade accounts and other receivables |
|
|
585 |
|
|
|
434 |
|
Inventory |
|
|
497 |
|
|
|
475 |
|
Prepaid expenses and other current assets |
|
|
1,941 |
|
|
|
895 |
|
Assets of discontinuing operations – current |
|
|
1,001 |
|
|
|
802 |
|
Total current assets |
|
|
20,464 |
|
|
|
23,214 |
|
Non-current assets: |
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
908 |
|
|
|
1,020 |
|
Operating lease right-of-use assets, net |
|
|
1,764 |
|
|
|
673 |
|
Long-term prepaid expenses and other assets |
|
|
1,265 |
|
|
|
1,221 |
|
Assets of discontinuing operations – non-current |
|
|
8,128 |
|
|
|
11,508 |
|
Total non-current assets |
|
|
12,065 |
|
|
|
14,422 |
|
Total
assets |
|
$ |
32,529 |
|
|
$ |
37,636 |
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,765 |
|
|
$ |
740 |
|
Accrued expenses |
|
|
1,476 |
|
|
|
764 |
|
Deferred revenue |
|
|
72 |
|
|
|
74 |
|
Obligations under operating leases, current portion |
|
|
241 |
|
|
|
174 |
|
Obligation under finance lease, current portion |
|
|
158 |
|
|
|
157 |
|
Liabilities of discontinuing operations – current |
|
|
3,760 |
|
|
|
3,522 |
|
Total current liabilities |
|
|
7,472 |
|
|
|
5,431 |
|
Obligations under operating leases, less current portion |
|
|
1,540 |
|
|
|
516 |
|
Obligations under finance leases, less current portion |
|
|
258 |
|
|
|
293 |
|
Long-term debt |
|
|
57 |
|
|
|
57 |
|
Liabilities of discontinuing operations – non-current |
|
|
834 |
|
|
|
49 |
|
Total
liabilities |
|
$ |
10,161 |
|
|
$ |
6,346 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
|
|
Preferred stock, authorized
9,764 shares $0.0001 par value, none issued |
|
|
- |
|
|
|
- |
|
Common stock, authorized 100,000 shares, $0.0001 par value, 29,412
and 28,993 shares issued and outstanding as of March 31, 2022 and
December 31, 2021, respectively |
|
|
3 |
|
|
|
3 |
|
Additional paid-in
capital |
|
|
110,411 |
|
|
|
110,174 |
|
Accumulated deficit |
|
|
(87,976 |
) |
|
|
(78,813 |
) |
Accumulated comprehensive
loss |
|
|
(70 |
) |
|
|
(74 |
) |
Total Stockholders’
equity |
|
|
22,368 |
|
|
|
31,290 |
|
Total liabilities and
Stockholders’ equity |
|
$ |
32,529 |
|
|
$ |
37,636 |
|
Vyant Bio,
Inc.Condensed Consolidated Statements of
Operations and Comprehensive
Loss(unaudited)(Shares and USD in
Thousands)
|
|
Three months ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
Revenue: |
|
|
|
|
|
|
|
|
Service |
|
$ |
94 |
|
|
$ |
97 |
|
Product |
|
|
209 |
|
|
|
106 |
|
Total revenue |
|
|
303 |
|
|
|
203 |
|
Operating costs
and expenses: |
|
|
|
|
|
|
|
|
Cost of goods sold – service |
|
|
38 |
|
|
|
64 |
|
Cost of goods sold – product |
|
|
348 |
|
|
|
396 |
|
Research and development |
|
|
1,551 |
|
|
|
820 |
|
Selling, general and administrative |
|
|
2,763 |
|
|
|
1,214 |
|
Merger related costs |
|
|
- |
|
|
|
2,145 |
|
Total operating costs and expenses |
|
|
4,700 |
|
|
|
4,639 |
|
Loss from operations |
|
|
(4,397 |
) |
|
|
(4,436 |
) |
|
|
|
|
|
|
|
|
|
Other (expense)
income: |
|
|
|
|
|
|
|
|
Change in fair value of warrant liability |
|
|
- |
|
|
|
214 |
|
Change in fair value of share-settlement obligation derivative |
|
|
- |
|
|
|
(250 |
) |
Loss on debt conversions |
|
|
- |
|
|
|
(2,518 |
) |
Interest expense |
|
|
(9 |
) |
|
|
(368 |
) |
Total other expense |
|
|
(9 |
) |
|
|
(2,922 |
) |
Loss from continuing
operations before income taxes |
|
|
(4,406 |
) |
|
|
(7,358 |
) |
Income tax expense
(benefit) |
|
|
- |
|
|
|
- |
|
Loss from continuing
operations |
|
|
(4,406 |
) |
|
|
(7,358 |
) |
Discontinuing
operations (net of $0 tax benefit in 2022 and 2021) |
|
|
(4,757 |
) |
|
|
(8 |
) |
Net loss |
|
|
(9,163 |
) |
|
|
(7,366 |
) |
Cumulative translation
adjustment |
|
|
4 |
|
|
|
- |
|
Comprehensive
loss |
|
$ |
(9,159 |
) |
|
$ |
(7,366 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share
attributed to common stock – basic and diluted: |
|
|
|
|
|
|
|
|
Net loss per share from
continuing operations |
|
$ |
(0.15 |
) |
|
$ |
(2.31 |
) |
Net loss per share from
discontinuing operations |
|
|
(0.17 |
) |
|
|
- |
|
Net loss per share |
|
$ |
(0.32 |
) |
|
$ |
(2.31 |
) |
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - Basic and Diluted |
|
|
29,013 |
|
|
|
3,184 |
|
Vyant Bio, Inc.Condensed
Consolidated Statements of Cash
Flows(unaudited)(USD in
Thousands)
|
|
Three months ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
Cash Flows from
Operating Activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(9,163 |
) |
|
$ |
(7,366 |
) |
Net loss from discontinuing operations |
|
|
4,757 |
|
|
|
8 |
|
Reconciliation of net loss to net cash used in operating
activities, continuing operations: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
278 |
|
|
|
366 |
|
Amortization of operating lease right-of-use assets |
|
|
98 |
|
|
|
117 |
|
Depreciation and amortization expense |
|
|
142 |
|
|
|
126 |
|
Change in fair value of share-settlement obligation derivative |
|
|
- |
|
|
|
250 |
|
Change in fair value of warrant liability |
|
|
- |
|
|
|
(214 |
) |
Change in fair value of 2020 Convertible Note with fair value
election |
|
|
- |
|
|
|
4 |
|
Accretion of debt discount |
|
|
- |
|
|
|
173 |
|
Loss on conversion of debt |
|
|
- |
|
|
|
2,518 |
|
Changes in operating assets and liabilities net of impacts
of business combination: |
|
|
|
|
|
|
|
|
Trade accounts and other receivables |
|
|
(151 |
) |
|
|
138 |
|
Inventory |
|
|
(22 |
) |
|
|
6 |
|
Prepaid expenses and other current assets |
|
|
213 |
|
|
|
(110 |
) |
Accounts payable |
|
|
(279 |
) |
|
|
(727 |
) |
Obligations under operating leases |
|
|
(98 |
) |
|
|
(117 |
) |
Accrued expenses and other current liabilities |
|
|
714 |
|
|
|
251 |
|
Net cash used in operating activities, continuing operations |
|
|
(3,511 |
) |
|
|
(4,577 |
) |
Net cash used in operating activities, discontinuing
operations |
|
|
(461 |
) |
|
|
(8 |
) |
Net cash used in operating activities |
|
|
(3,972 |
) |
|
|
(4,585 |
) |
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
Equipment purchases |
|
|
(30 |
) |
|
|
(26 |
) |
Cash acquired from acquisition |
|
|
- |
|
|
|
30,163 |
|
Net cash (used in) provided by investing activities, continuing
operations |
|
|
(30 |
) |
|
|
30,137 |
|
Net cash used in investing activities, discontinuing
operations |
|
|
(30 |
) |
|
|
- |
|
Net cash (used in) provided by investing activities |
|
|
(60 |
) |
|
|
30,137 |
|
Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
|
Issuance of common stock, net of issuance costs |
|
|
(97 |
) |
|
|
4 |
|
Issuance of Series C Preferred Stock, net of issuance costs |
|
|
- |
|
|
|
1,786 |
|
2020 Convertible Note proceeds |
|
|
- |
|
|
|
5,022 |
|
Principal payments on long-term debt |
|
|
- |
|
|
|
(82 |
) |
Principal payments on obligations under finance leases |
|
|
(34 |
) |
|
|
- |
|
Net cash (used in) provided by financing activities, continuing
operations |
|
|
(131 |
) |
|
|
6,730 |
|
Net cash used in financing activities, discontinuing
operations |
|
|
(5 |
) |
|
|
- |
|
Net cash (used in) provided by financing activities |
|
|
(136 |
) |
|
|
6,730 |
|
Net (decrease) increase in cash and cash equivalents |
|
|
(4,168 |
) |
|
|
32,282 |
|
Cash and cash equivalents, and restricted cash beginning of the
period |
|
|
20,608 |
|
|
|
792 |
|
Cash and cash equivalents, and restricted cash end of the
period |
|
$ |
16,440 |
|
|
$ |
33,074 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
16,440 |
|
|
$ |
32,337 |
|
Restricted cash |
|
|
- |
|
|
|
737 |
|
Total cash and cash equivalents and restricted cash |
|
$ |
16,440 |
|
|
$ |
33,074 |
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information from continuing
operations: |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
7 |
|
|
$ |
- |
|
Cash paid for income taxes |
|
|
1 |
|
|
|
- |
|
Non-cash investing
activities from continuing operations: |
|
|
|
|
|
|
|
|
Fair value of non-cash merger consideration |
|
$ |
- |
|
|
$ |
59,920 |
|
Right-of-use asset obtained in exchange for new lease |
|
|
1,189 |
|
|
|
- |
|
Non-cash financing
activities from continuing
operations: |
|
|
|
|
|
|
|
|
Conversion of Preferred Stock to Common Stock upon Merger |
|
$ |
- |
|
|
$ |
30,793 |
|
Conversion of 2020 Convertible Notes and Accrued Interest to Common
Stock upon Merger |
|
|
- |
|
|
|
16,190 |
|
Reclass warrant liability to equity upon Merger |
|
|
- |
|
|
|
421 |
|
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