VivoSim Labs Reports Q2 Fiscal 2026 Revenue Decline and Net Loss

VivoSim Labs, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a total revenue of $28,000 for the three months ended September 30, 2025, a slight decrease from $30,000 in the same period last year. The company’s revenue primarily stems from royalty income, which remained stable at $28,000, while product revenue dropped to zero from $2,000, reflecting the cessation of operations in its former Mosaic division. For the six months ended September 30, 2025, total revenue was $65,000, down from $69,000 in the prior year. The company recorded a net loss of $2.5 million for the quarter, slightly improved from a loss of $2.5 million in the same quarter of the previous year.

In terms of operational changes, VivoSim Labs has undergone significant restructuring, including the sale of its FXR program for $10 million in March 2025, which has allowed the company to focus on its core business of drug testing using three-dimensional human tissue models. The company’s research and development expenses for the quarter were $923,000, a decrease of 6% from $984,000 in the prior year, attributed to a reduction in personnel from an average of 14 to 9 full-time employees. Selling, general, and administrative expenses increased by 5% to $1.74 million, reflecting higher personnel-related costs.

VivoSim's total assets as of September 30, 2025, were approximately $9.7 million, down from $14.7 million at the end of the previous fiscal period. The company’s cash and cash equivalents decreased to $6.7 million from $11.3 million, while current liabilities also fell to $2.4 million from $3.7 million. The accumulated deficit increased to $347.5 million, indicating ongoing financial challenges. The company reported negative cash flows from operations of approximately $6.3 million for the six months ended September 30, 2025, compared to $5.6 million in the same period last year.

Looking ahead, VivoSim Labs anticipates the need for substantial additional funding to support its operations and strategic initiatives. The company has indicated that it will seek to raise capital through various means, including equity financing, to continue its focus on liver and intestinal toxicology insights and the development of its Preclinical IBD Program. The company’s management has expressed concerns regarding its ability to continue as a going concern, given the prevailing liquidity risks and the need for ongoing financial support. As of September 30, 2025, VivoSim had approximately $140.1 million available for future offerings under its shelf registration statement, which may provide a pathway for future capital raises.