aibioVivoSim Labs reports regained equity compliance after July cash events
Tickers VIVS
VivoSim Labs said Nasdaq told it on August 4, 2026 that it met the $2.5M stockholders' equity minimum, after a $5.0 million milestone payment, an escrow release and a $4.0 million financing in July.
Key facts
- Company
- VivoSim Labs, INC. (NASDAQ: VIVS)
- News type
- Company Updates
- Primary source
- VivoSim Labs, INC. 8-K (2026-08-06)
VivoSim Labs, Inc. (Nasdaq: VIVS) said on August 6, 2026 that it had regained compliance with the Nasdaq minimum stockholders' equity requirement. The company said the Listing Qualifications Staff of Nasdaq notified it on August 4, 2026 that it complies with Nasdaq Listing Rule 5550(b)(1), which requires registrants to maintain stockholders' equity of $2.5M. The update appeared in a press release furnished with an 8-K filing.
The change followed several events in July 2026. The company received a $5.0 million milestone payment from Eli Lilly and Company, and $1.0 million of additional cash was released from escrow on July 22, 2026. Both payments relate to the company's earlier sale of its FXR program to Eli Lilly and Company. The company also completed a financing on July 17, 2026, issuing pre-funded warrants and common warrants at a combined purchase price of $0.85 per share of common stock underlying the pre-funded warrants. It received gross proceeds of $4.0 million, with net proceeds of approximately $3.6 million.
Why the company released the update
The company said the July events occurred after the close of its fiscal year ended March 31, 2026, and in the first quarter of fiscal 2027, the quarter ending June 30, 2026. As a result, they were not reflected in the audited financial statements in its Annual Report on Form 10-K, filed July 14, 2026. They also will not appear in the financial statements in its upcoming Quarterly Report on Form 10-Q for the period ended June 30, 2026. The company said it was providing the information to complement its earlier filings so stockholders and the public would have updated figures.
The company gave preliminary figures that are unaudited and may change. As of August 3, 2026, it reported cash on hand of approximately $10.1 million. Shares of common stock outstanding were 3,194,295 at June 30, 2026, and 13,390,789 at August 3, 2026. The increase reflects 9,896,718 shares issued between July 15 and July 31, 2026 on the exercise of certain warrants to purchase common stock.
The business and its guidance
VivoSim Labs describes itself as a provider of new approach methodology human cellular models for preclinical safety. Its services involve testing drugs and drug candidates in three-dimensional human tissue models of liver and intestine, and it provides liver and intestinal toxicology insights to partners. The company said it is marketing contract research services that use its NAM models to pharmaceutical companies.
The company reiterated its previously announced guidance that it anticipates revenue growth of 500%+ in Fiscal Year 2027. The release does not give revenue figures for either period, so a 500% rise cannot be judged against any base, and it is the company's own guidance.
The company's annual report, which the release cites, says the FXR program was sold in March 2025 for $10.0 million, with $9.0 million paid at closing and $1.0 million held in escrow for 15 months. Future milestones of up to $50.0 million in aggregate remain possible under that sale. The annual report also says the company's name changed to VivoSim Labs, Inc. effective April 24, 2025.
For the fiscal year ended March 31, 2026, research and development expense was $4.2 million, compared with $5.0 million in fiscal 2025. The company reported a net loss of $13.8 million, against $2.5 million, and cash from operations of negative $10.8 million, against negative $9.5 million.
What comes next
The company said the July events will not be in the financial statements of its upcoming Form 10-Q for the quarter ended June 30, 2026, and that its guidance for Fiscal Year 2027 stands as previously announced.
The compliance came from one-time cash, not from operations. The milestone, the escrow release and a $4.0 million financing at $0.85 per share lifted equity, while shares outstanding rose from 3,194,295 to 13,390,789 between June 30 and August 3, 2026, which dilutes existing holders. Cash on hand of approximately $10.1 million is unaudited and preliminary and compares with cash from operations of negative $10.8 million for the last fiscal year. The company did not say how long that cash lasts, and the release does not say whether the equity cushion above $2.5M is large.