Q3 2022 and Recent Scientific and Business Highlights
- Completed the sale of its vivoPharm subsidiary to Reaction Biology Corporation for $5.5 million in an upfront cash payment
- Delivered platform and poster presentations at the 2022 CDKL5 Forum hosted by the Loulou Foundation
- Entered into a master services agreement and related statement of work with an Australian CRO in November 2022 to support the Company’s adult Rett Syndrome clinical trial
- Progress with licensing our iPSC technology to transition key product sales customers
Q3 2022 Financial Highlights
- $9.4 million of cash and equivalents as of September 30, 2022
- Current cash balances, net proceeds from the sale of vivoPharm and future proceeds from the equity line of credit and ATM are expected to fund operations until at least the end of 2023
CHERRY HILL, N.J., Nov. 15, 2022 (GLOBE NEWSWIRE) -- Vyant Bio, Inc. (“Vyant Bio” or “Company”) (Nasdaq: VYNT) is an innovative biotechnology company reinventing drug discovery for complex neurodevelopmental and neurodegenerative disorders. The Company’s proprietary central nervous system (“CNS”) drug discovery platform combines human-derived organoid models of brain disease, scaled biology, and machine learning to identify and validate drug targets and therapeutic candidates. Today, Vyant Bio announces results for the third quarter of 2022. The Company filed its Form 10-Q for the nine months ended September 30, 2022, with the Securities and Exchange Commission.
“I am pleased with Vyant Bio’s scientific progress in the third quarter of 2022, as we progress our repurposing compound toward a clinical trial in Q1 next year. In addition, Vyant Bio’s recent sale of our vivoPharm subsidiary adds non-dilutive cash to our balance sheet, completes one of our key milestones for 2022 and aligns well to conserve cash by focusing on our therapeutic pipeline to more quickly advance our drug discovery program in CNS disorders” stated Jay Roberts, Vyant Bio’s CEO.
Mr. Roberts added, “we plan on hosting a virtual R&D Day in early December for the investment and scientific community when our scientific team will discuss our ongoing work in RTT, CDKL5 deficiency disorder and familial Parkinson’s disease. We will announce the details of this virtual event shortly.”
“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 RTT patient-derived cortical organoids show a robust and reproducible disease-specific phenotype that can be quantified in an unbiased manner across dozens of endpoints. Through phenotypic screening of our Rett organoids, we identified VYNT-0126 which has consistently shown a robust dose-dependent rescue of the RTT functional phenotype with a differentiated mechanism of action from other Rett syndrome clinical candidates” stated Robert T. Fremeau, Jr., PhD, Chief Scientific Officer of Vyant Bio.
Dr. Fremeau added “we are excited to be participating in the Society for Neuroscience scientific meeting this week in San Diego, where we will announce during a platform presentation in the Rett Syndrome Nanosymposium the identity of the repurposing drug VYNT-0126 and its differentiation from two advanced clinical candidates. I am also pleased to announce that we recently submitted an application to conduct a phase 2 proof-of-concept clinical trial for VYNT-0126 in adult RTT patients in Australia. In addition, we have also received acknowledgment that the FDA has accepted our request for a pre-IND meeting, to provide feedback and guidance for our clinical development plan for this program by December 27, 2022. These represent important milestones for Vyant Bio as we strive to establish the value of our proprietary CNS drug discovery platform to discover novel therapeutics for CNS genetic diseases that can potentially halt disease progression or perhaps, even cure disease.”
On Wednesday, November 16, 2022 Vyant Bio will host an investor conference call and webcast at 4:30 pm ET.
Jay Roberts, Chief Executive Officer, Andy LaFrence, Chief Financial Officer, and Robert T. Fremeau, Jr., PhD, Chief Scientific Officer, of Vyant Bio will provide an update on the business, scientific, and financial progress made during the third quarter and nine months of 2022.
| Event: | Vyant Bio Investor Conference Call and Webcast for the Third Quarter and Nine Months of 2022 |
| Date: | Wednesday, November 16, 2022 |
| Time: | 4:30 pm ET |
| Dial In: | Toll Free: 1-888-506-0062Conference ID: 721825 |
| Webcast: | https://www.webcaster4.com/Webcast/Page/2756/47148 |
The 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.
Third Quarter 2022 Financial Update
Cash and cash equivalents totaled $9.4 million as of September 30, 2022. On November 3, 2022, the Company completed the sale of its vivoPharm subsidiary to Reaction Biology Corporation for $5.5 million in an upfront cash payment, subject to customary adjustments for working capital, closing cash, indebtedness and transaction expenses. After these closing adjustments were reflected, $5.5 million was paid at closing. Vyant Bio expects to net approximately $4.4 million in cash after tax and transaction-related expenses, as well as incur $0.6 million in exit costs associated with this transaction.
The Company implemented two new financing vehicles in the first half of 2022 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, net proceeds from the sale of vivoPharm and future proceeds from the equity line of credit and ATM are expected to fund operations until at least the end of 2023.
During the first nine months of 2022, the Company continued the process of divesting its vivoPharm subsidiary operating in Australia, which is classified as a “held-for-sale” asset, and its financial information as “discontinuing operations.”
ABOUT VYANT BIO, INC.
Vyant Bio, Inc. (“Vyant Bio” or the “Company”) (Nasdaq: VYNT), is an innovative biotechnology company focused on identifying unique biological targets and novel and repurposed therapeutics for treating the debilitating neurodevelopmental and neurodegenerative disorders for which there are no current therapies. 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 familial 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.com
LinkedIn: https://www.linkedin.com/company/vyant-bio
Twitter: @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 revenue 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:
Skyline Corporate Communications Group, LLC
Scott Powell, President
One Rockefeller Plaza, 10th Floor
New York, NY 10020 USA
Office: (646) 893-5835 x2
Email: info@skylineccg.com
###
Tables to Follow
Vyant Bio, Inc.
Consolidated Balance Sheets
(unaudited)
(Shares and USD in thousands)
| September 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,394 | $ | 20,608 | ||||
| Trade accounts and other receivables | 383 | 434 | ||||||
| Inventory | 66 | 475 | ||||||
| Prepaid expenses and other current assets | 1,161 | 895 | ||||||
| Assets of discontinuing operations – current | 1,122 | 802 | ||||||
| Total current assets | 12,126 | 23,214 | ||||||
| Non-current assets: | ||||||||
| Fixed assets, net | 1,223 | 1,020 | ||||||
| Operating lease right-of-use assets, net | 1,617 | 673 | ||||||
| Long-term prepaid expenses and other assets | 1,110 | 1,221 | ||||||
| Assets of discontinuing operations – non-current | 6,963 | 11,508 | ||||||
| Total non-current assets | 10,913 | 14,422 | ||||||
| Total assets | $ | 23,039 | $ | 37,636 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 897 | $ | 740 | ||||
| Accrued expenses | 1,329 | 764 | ||||||
| Deferred revenue | 72 | 74 | ||||||
| Obligations under operating leases, current portion | 303 | 174 | ||||||
| Obligation under finance leases, current portion | 247 | 157 | ||||||
| Liabilities of discontinuing operations – current | 3,845 | 3,522 | ||||||
| Total current liabilities | 6,693 | 5,431 | ||||||
| Obligations under operating leases, less current portion | 1,383 | 516 | ||||||
| Obligations under finance leases, less current portion | 338 | 293 | ||||||
| Long-term debt | 57 | 57 | ||||||
| Liabilities of discontinuing operations – non-current | 728 | 49 | ||||||
| Total liabilities | $ | 9,199 | $ | 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, 5,883 and 5,798 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 1 | 1 | ||||||
| Additional paid-in capital | 111,009 | 110,176 | ||||||
| Accumulated deficit | (97,244 | ) | (78,813 | ) | ||||
| Accumulated comprehensive income (loss) | 74 | (74 | ) | |||||
| Total Stockholders’ equity | 13,840 | 31,290 | ||||||
| Total liabilities and Stockholders’ equity | $ | 23,039 | $ | 37,636 | ||||
Vyant Bio, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(unaudited)
(Shares and USD in thousands, except per share amounts)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue: | ||||||||||||||||
| Service | $ | - | $ | 97 | $ | 94 | $ | 407 | ||||||||
| Product | 152 | 159 | 526 | 381 | ||||||||||||
| Total revenue | 152 | 256 | 620 | 788 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Cost of goods sold – service | - | 110 | 38 | 277 | ||||||||||||
| Cost of goods sold – product | 257 | 355 | 909 | 1,096 | ||||||||||||
| Research and development | 1,993 | 1,211 | 5,232 | 2,941 | ||||||||||||
| Selling, general and administrative | 1,583 | 1,856 | 6,855 | 5,807 | ||||||||||||
| Merger related costs | - | - | - | 2,310 | ||||||||||||
| Total operating costs and expenses | 3,833 | 3,532 | 13,034 | 12,431 | ||||||||||||
| Loss from operations | (3,681 | ) | (3,276 | ) | (12,414 | ) | (11,643 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Change in fair value of warrant liability | - | - | - | 214 | ||||||||||||
| Change in fair value of share-settlement obligation derivative | - | - | - | (250 | ) | |||||||||||
| Loss on debt conversions | - | - | - | (2,518 | ) | |||||||||||
| Other income (expense), net | 5 | 6 | 5 | (22 | ) | |||||||||||
| Interest income (expense), net | 29 | (4 | ) | 31 | (367 | ) | ||||||||||
| Total other income (expense) | 34 | 2 | 36 | (2,943 | ) | |||||||||||
| Loss from continuing operations before income taxes | (3,647 | ) | (3,274 | ) | (12,378 | ) | (14,586 | ) | ||||||||
| Income tax expense (benefit) | - | - | - | - | ||||||||||||
| Loss from continuing operations | (3,647 | ) | (3,274 | ) | (12,378 | ) | (14,586 | ) | ||||||||
| Discontinuing operations (net of $40 and $84 tax benefit in the three and nine months ended September 30, 2022, respectively, and $0 in 2021) | 184 | (1,187 | ) | (6,053 | ) | (1,427 | ) | |||||||||
| Net loss | (3,463 | ) | (4,461 | ) | (18,431 | ) | (16,013 | ) | ||||||||
| Cumulative translation adjustment | 136 | 17 | 148 | 16 | ||||||||||||
| Comprehensive loss | $ | (3,327 | ) | $ | (4,444 | ) | $ | (18,283 | ) | $ | (15,997 | ) | ||||
| Net loss per share attributed to common stock – basic and diluted: | ||||||||||||||||
| Net loss per share from continuing operations | $ | (0.62 | ) | $ | (0.57 | ) | $ | (2.11 | ) | $ | (3.56 | ) | ||||
| Net income (loss) per share from discontinuing operations | 0.03 | (0.20 | ) | (1.04 | ) | (0.35 | ) | |||||||||
| Net loss per share | $ | (0.59 | ) | $ | (0.77 | ) | $ | (3.15 | ) | $ | (3.91 | ) | ||||
| Weighted average shares outstanding: | ||||||||||||||||
| Weighted average common shares outstanding - Basic and Diluted | 5,883 | 5,797 | 5,856 | 4,096 | ||||||||||||
Vyant Bio, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(USD in Thousands)
| Nine months ended September 30, | ||||||||
| 2022 | 2021 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net loss | $ | (18,431 | ) | $ | (16,013 | ) | ||
| Net loss from discontinuing operations | 6,053 | 1,427 | ||||||
| Reconciliation of net loss to net cash used in operating activities, continuing operations: | ||||||||
| Stock-based compensation | 865 | 825 | ||||||
| Amortization of operating lease right-of-use assets | 245 | 211 | ||||||
| Depreciation and amortization expense | 400 | 410 | ||||||
| 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 | ||||||
| Gain on sale of assets | - | (14 | ) | |||||
| Changes in operating assets and liabilities net of impacts of business combination: | ||||||||
| Trade accounts and other receivables | 51 | (37 | ) | |||||
| Inventory | 409 | (66 | ) | |||||
| Prepaid expenses and other current assets | (155 | ) | (469 | ) | ||||
| Accounts payable | 156 | (1,303 | ) | |||||
| Obligations under operating leases | (193 | ) | (263 | ) | ||||
| Accrued expenses and other current liabilities | 563 | (756 | ) | |||||
| Net cash used in operating activities, continuing operations | (10,037 | ) | (13,317 | ) | ||||
| Net cash used in operating activities, discontinuing operations | (352 | ) | (673 | ) | ||||
| Net cash used in operating activities | (10,389 | ) | (13,990 | ) | ||||
| Cash Flows from Investing Activities: | ||||||||
| Equipment purchases and leasehold improvements | (608 | ) | (521 | ) | ||||
| Cash acquired from acquisition | - | 30,163 | ||||||
| Sale of Patent | - | 50 | ||||||
| Net cash (used in) provided by investing activities, continuing operations | (608 | ) | 29,692 | |||||
| Net cash used in investing activities, discontinuing operations | (76 | ) | - | |||||
| Net cash (used in) provided by investing activities | (684 | ) | 29,692 | |||||
| Cash Flows from Financing Activities: | ||||||||
| Issuance of common stock (net of issuance costs) | (246 | ) | 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 | ) | |||||
| Proceeds from lease financing | 266 | - | ||||||
| Principal payments on obligations under finance leases | (131 | ) | - | |||||
| Net cash (used in) provided by financing activities, continuing operations | (111 | ) | 6,730 | |||||
| Net cash used in financing activities, discontinuing operations | (30 | ) | (21 | ) | ||||
| Net cash (used in) provided by financing activities | (141 | ) | 6,709 | |||||
| Net (decrease) increase in cash and cash equivalents | (11,214 | ) | 22,411 | |||||
| Cash and cash equivalents beginning of the period | 20,608 | 792 | ||||||
| Cash and cash equivalents end of the period | $ | 9,394 | $ | 23,203 | ||||
| Supplemental disclosure of cash flow information from continuing operations: | ||||||||
| Cash paid for interest | $ | 25 | $ | - | ||||
| Cash paid for income taxes | 8 | - | ||||||
| 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 leases | 1,189 | 83 | ||||||
| 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 | ||||||
