Vyant Bio Reports Fourth Quarter and Year-End 2021 Results and Provides Strategic and Business Highlights

Rhea-AI Summary

Vyant Bio is focusing on drug discovery for neurodevelopmental and neurodegenerative diseases, including Rett Syndrome and familial Parkinson’s Disease. The company is divesting its vivoPharm subsidiary to enhance its drug discovery capabilities. As of December 31, 2021, Vyant Bio reported $20.6 million in cash and an increase in revenue from continuing operations to $1.1 million. However, net losses surged to $40.9 million due to non-cash and merger-related expenses. The company aims to leverage unique biomarkers to improve drug efficacy pre-trial, maximizing shareholder value.

Positive

• Entered a strategic collaboration with Organo Therapeutics to enhance drug discovery.
• Revenue from continuing operations rose to $1.1 million in 2021, up from $867,000 in 2020.

Negative

• Net loss increased significantly to $40.9 million in 2021 from $8.7 million in 2020.
• Selling, general, and administrative expenses rose sharply to $8.4 million in 2021.

Highlights

• Focused as a pure-play drug discovery and development biotechnology company
• Primary work on the discovery of small molecule therapeutics to treat neurodevelopmental and neurodegenerative diseases for Rett Syndrome (“Rett”), CDKL5 Deficiency Disorder (“CDD”), and familial Parkinson’s Disease
• Streamlined the business focus; pursuing the divestiture of wholly-owned subsidiary vivoPharm to exit CRO services business to focus on drug discovery
• Entered into a strategic collaboration with Organo Therapeutics to accelerate 3D organoid disease modeling and identification of novel therapeutics to treat familial Parkinson’s Disease in Q1, 2022
• Cash position at December 31, 2021 was $20.6 million
  

CHERRY HILL, N.J., March 30, 2022 (GLOBE NEWSWIRE) -- 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. Vyant Bio’s current programs are focused on identifying repurposed and novel small molecule clinical candidates for rare CNS genetic disorders including Rett Syndrome (“Rett”), CDKL5 Deficiency Disorders (“CDD”) and familial Parkinson’s Disease (“PD”). The Company’s approach to drug discovery focuses on de-risking candidate selection, thereby improving the known effectiveness of drugs discovered earlier in the development cycle. Today, Vyant Bio will report its Fourth Quarter and Year-End 2021 highlights and business updates in a conference call and webcast scheduled for 8:30am ET.

“Vyant Bio is committed to transforming into a pure-play drug discovery and development biotech company. We are incorporating the use of quantitative biomarkers that we believe are unique to our Rett and CDD programs that should provide meaningful human-biology-derived, preclinical signals of potential drug efficacy before the commencement of clinical trials”, stated Robert T. Fremeau PhD, the Company’s Chief Scientific Officer.

“We believe our drug discovery approaches will demonstrate a capital efficient and effective way to identify novel and repurposed therapeutics to treat patients with severe neurological conditions and will thereby maximize value to our shareholders,” stated Jay Roberts, Chief Executive Officer of Vyant Bio.

Vyant Bio filed its Year-End 2021 on Form 10-K today with the Securities and Exchange Commission. Please refer to Vyant Bio’s Form 10-K for more detailed information with respect to our financial results for the year ended December 31, 2021.

YEAR-END 2021 FINANCIAL RESULTS

Cash and cash equivalents totaled $20.6 million as of December 31, 2021.

During the fourth quarter of 2021, we commenced the process to sell the vivoPharm business. Therefore the vivoPharm business is classified as a held-for-sale asset and its financial information as discontinuing operations as of and for the year ended December 31, 2021. Continuing operations as of and for the year ended December 31, 2021 consists of Vyant Bio and StemoniX, Inc.

Revenue from continuing operations for 2021 was $1.1 million as compared with $867 thousand in 2020. Cost of goods sold – service aggregated $408 thousand in 2021 and $384 thousand in 2020. Cost of goods sold – product aggregated $1.4 million and $717 thousand for the year ended December 31, 2021 and 2020, respectively. Substantially all of our revenue from continuing operations was generated from our Maple Grove facility. As we move this facility to internal research and development activities in 2021, the costs for this facility will have a corresponding shift to research and development costs in 2022.

Research and development costs for 2021 increased to $4.3 million as compared with $3.2 million in 2020 which was the result of increased headcount, lab and professional service costs. Selling, general and administrative expenses increased from $2.7 million in 2020 to $8.4 million in 2021 which reflects post-merger public company costs.

Overall, the net loss of $8.7 million in 2020 increased to $40.9 million in 2021. The 2021 net loss includes $26.0 million of non-cash expenses as well as $2.3 million of merger related expenses. The net loss from continuing operations aggregated $18.6 million and included non-cash expenses of $4.8 million as well as $2.3 million in merger related costs. The net loss of $22.3 million from discontinuing operations included a $20.2 million goodwill impairment charge and other non-cash expenses aggregating approximately $1.0 million.

Vyant Bio’s Conference Call and Webcast and Information

Vyant Bio’s management will host a conference call on Wednesday, March 30, 2022 at 8:30am ET to discuss the Fourth Quarter and Year End 2021 results and provide strategic business updates as well as answer questions. Event information is below:

Event: Investor Conference Call and Webcast for the Fourth Quarter and Year-End 2021
Date: Wednesday, March 30, 2022
Time: 8:30am ET
Dial In: Toll Free: 1.877.545.0523 Conference ID: 449263
Webcast: https://www.webcaster4.com/Webcast/Page/2756/44775

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: 44775

Webcast Replay Information: https://ir.vyantbio.com/news-events/ir-calendar

ABOUT VYANT BIO, INC.

Vyant Bio, Inc. (“Vyant Bio”, 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 to treat neurological developmental and degenerative 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 known 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, which will allow for creating 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 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 shareholder letter 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, and potential for our services, future revenues or growth, or the potential for future strategic transactions 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, realize the anticipated benefits of the merger of StemoniX, Inc. and Cancer Genetics, Inc., 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, Ph.D., MBA
Investor Relations
Zimmons International Communications, Inc.
Email: jzimmons@zimmonsic.com
Phone: +1.917.214.3514

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Source: Vyant Bio, Inc.

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Vyant Bio, Inc.
(Formerly Known as Cancer Genetics, Inc.)

Consolidated Balance Sheets
(Shares and USD in Thousands)

		December 31,
		2021				2020
Assets
Current assets:
Cash and cash equivalents		$	20,608			$	792
Trade accounts and other receivables			434				357
Inventory			475				415
Prepaid expenses and other current assets			895				223
Assets of discontinuing operations – current			802				-
Total current assets			23,214				1,787
Non-current assets:
Fixed assets, net			1,020				1,031
Operating lease right-of-use assets, net			673				1,095
Long-term prepaid expenses and other assets			1,221				136
Assets of discontinuing operations – non-current			11,508				-
Total non-current assets			14,422				2,262
Total Assets		$	37,636			$	4,049
Liabilities, Temporary Equity and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable		$	740			$	1,300
Accrued expenses			764				162
Deferred revenue			74				92
Obligations under operating leases, current portion			174				486
Obligation under finance lease, current portion			157				-
Other current liabilities			-				9
Liabilities of discontinuing operations – current			3,522				-
Total current liabilities			5,431				2,049
Obligations under operating leases, less current portion			516				627
Obligations under finance leases, less current portion			293				-
Share-settlement obligation derivative			-				1,690
Accrued interest			-				277
Long-term debt			57				6,839
Liabilities of discontinuing operations – non-current			49				-
Total Liabilities			6,346				11,482
Commitments and Contingencies (Note 16)
Temporary Equity
Series A Convertible Preferred stock, $0.0001 par value; 4,700 shares authorized, 0 and 4,612 shares issued and outstanding as of December 31, 2021 and 2020, respectively (liquidation value of $0 and $11,732, respectively, as of December 31, 2021 and 2020)			-				12,356
Series B Convertible Preferred stock, $0.0001 par value; 4,700 shares authorized, 0 and 3,489 shares issued and outstanding, as of December 31, 2021 and 2020, respectively (liquidation value of $0 and $15,707, respectively, as of December 31, 2021 and 2020)			-				16,651
Series C Convertible Preferred stock, $0.0001 par value; 2,000 shares authorized, 0 shares issued and outstanding as of December 31, 2021 and 2020 (liquidation value of $0 as of December 31, 2021 and 2020)			-				-
Total Temporary Equity			-				29,007
Stockholders’ Equity (Deficit)
Preferred stock, authorized 9,764 shares $ 0.0001 par value, 0 shares issued and outstanding as of December 31, 2021 and 2020			-				-
Common stock, authorized 100,000 shares, $0.0001 par value, 28,993 and 2,594 shares issued and outstanding as of December 31, 2021 and 2020, respectively			3				-
Additional paid-in capital			110,174				1,514
Accumulated comprehensive loss			(74	)			-
Accumulated deficit			(78,813	)			(37,954	)
Total Common Stockholders’ Equity (Deficit)			31,290				(36,440	)
Total Liabilities and Stockholders’ Equity (Deficit)		$	37,636			$	4,049

Vyant Bio, Inc.
(Formerly Known as Cancer Genetics, Inc.)

Consolidated Statements of Operations and Comprehensive Loss
(Shares and USD in Thousands)

		Years Ended December 31,
		2021				2020
Revenue:
Service		$	665			$	588
Product			483				279
Total revenue			1,148				867
Operating costs and expenses:
Cost of goods sold – service			408				384
Cost of goods sold – product			1,439				717
Research and development			4,273				3,232
Selling, general and administrative			8,424				2,717
Merger related costs			2,310				1,440
Total operating costs and expenses			16,854				8,490
Loss from operations			(15,706	)			(7,623	)
Other income (expense):
Change in fair value of warrant liability			214				-
Change in fair value of share-settlement obligation derivative			(250	)			(503	)
Loss on debt conversions			(2,518	)			-
Other income			57				11
Interest expense, net			(372	)			(535	)
Total other income (expense)			(2,869	)			(1,027	)
Loss from continuing operations before income taxes			(18,575	)			(8,650	)
Income tax expense (benefit)			-				-
Loss from continuing operations			(18,575	)			(8,650	)
Discontinuing operations (net of $0 tax benefit in 2021)			(22,284	)			-
Net loss			(40,859	)			(8,650	)
Cumulative translation adjustment			(74	)			-
Comprehensive loss		$	(40,933	)		$	(8,650	)
Net loss per share attributed to common stock – basic and diluted:
Net loss per share from continuing operations		$	(0.82	)		$	(3.48	)
Net loss per share from discontinuing operations			(0.99	)			-
Net loss per share		$	(1.81	)		$	(3.48	)
Weighted average shares outstanding:
Weighted average common shares outstanding – basic and diluted			22,614				2,486

FAQ

What is Vyant Bio's focus in drug development?

Vyant Bio specializes in drug discovery for neurodevelopmental and neurodegenerative diseases, particularly Rett Syndrome and familial Parkinson’s Disease.

What recent strategic move did Vyant Bio announce?

Vyant Bio is divesting its vivoPharm subsidiary to concentrate fully on drug discovery.

What were Vyant Bio's financial results for 2021?

Vyant Bio reported a revenue of $1.1 million and a net loss of $40.9 million for the year 2021.

How much cash did Vyant Bio have at the end of 2021?

As of December 31, 2021, Vyant Bio had a cash position of $20.6 million.

What collaboration did Vyant Bio enter into recently?

Vyant Bio entered into a strategic collaboration with Organo Therapeutics to accelerate drug discovery efforts.