VivoSim Labs Reports 51% Revenue Decline, Net Loss Improvement in Q2 2026

VivoSim Labs, Inc. reported its financial results for the three months ended June 30, 2026, revealing a total revenue of $18,000, a decrease of 51% from $37,000 in the same period last year. The company experienced a net loss of $1.34 million, significantly improved from a loss of $2.84 million in the prior year. This reduction in loss was attributed to a gain of $1.4 million from the change in fair value of common stock warrant liabilities, which was not present in the previous year. The loss per share for the quarter was $0.25, compared to $1.14 in the same quarter of 2025.

In terms of operational metrics, VivoSim's research and development expenses rose to $1.13 million, up 13% from $1 million in the prior year, reflecting an increase in personnel costs due to a higher average headcount. Conversely, selling, general, and administrative expenses decreased by 16% to $1.65 million, down from $1.95 million, primarily due to reduced corporate-related expenses following the sale of its FXR program in March 2025. The company’s total current assets decreased to approximately $3.23 million from $6.63 million at the end of the previous fiscal period, while current liabilities also fell to $1.89 million from $2.79 million.

Strategically, VivoSim has shifted its focus from clinical-stage biotechnology to providing drug testing services using three-dimensional human tissue models. This transition was marked by the sale of its FXR314 program for $10 million in March 2025, with additional milestone payments expected as the asset progresses through development. The company has also changed its name to VivoSim Labs, Inc. to better reflect its new business model. In July 2026, VivoSim received a $5 million milestone payment related to the FXR314 program, along with the release of $1 million held in escrow.

As of June 30, 2026, VivoSim had cash and cash equivalents of approximately $1.67 million, down from $5.02 million at the end of March 2026. The company reported negative cash flows from operations of $3.21 million for the quarter, although it noted significant cash inflows from the FXR asset sale after the reporting period. VivoSim's management indicated that substantial additional funding will be necessary to support future operations, raising concerns about the company's ability to continue as a going concern for at least the next year.

Looking ahead, VivoSim plans to expand its offerings in liver and intestinal toxicology insights using its new approach methodologies (NAM) models. The company aims to partner with pharmaceutical and biotech firms to reduce the risks and costs associated with drug development. However, it acknowledges the need for further capital to implement its business plan effectively, with ongoing liquidity risks posing challenges to its operational sustainability.