VBIO 10-Q

Valion Bio, Inc. (VBIO)

10-Q 2022-11-14 For: 2022-09-30

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Added on April 10, 2026



☐ Large accelerated Filer	☐ Accelerated Filer
☒ Non-accelerated Filer	☒ Smaller reporting company
☒ Emerging Growth Company



PART I - FINANCIAL INFORMATION

		Page
Item 1.	Financial Statements	1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	27

Item 4.	Controls and Procedures	28

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	30

Item 1A.	Risk Factors	30

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30

Item 3.	Defaults upon Senior Securities	31

Item 4.	Mine Safety Disclosures	31

Item 5.	Other Information	31

Item 6.	Exhibits	32

	Signatures	33


Condensed Balance Sheets as of September 30, 2022 (unaudited) and December 31, 2021	2
Condensed Statements of Operations for the three and nine months ended September 30, 2022 and 2021 (unaudited)	3
Condensed Statements of Stockholders’ Equity for the three and nine months ended September 30, 2022 and 2021 (unaudited)	4
Condensed Statements of Cash Flow for the nine months ended September 30, 2022 and 2021 (unaudited)	5
Notes to Condensed Financial Statements (unaudited)	6


	September 30,			December 31,
	2022			2021
ASSETS
Current assets
Cash and cash equivalents	$	6,328		$	12,975
Accounts receivable, net		95			92
Inventory, net		761			429
Deferred offering costs		79			—
Prepaid expenses and other current assets		331			793
Total current assets		7,594			14,289
Property and equipment, net		15			11
Right-of-use assets, operating lease		565			687
Other assets		34			49
Total assets	$	8,208		$	15,036

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	1,602		$	789
Other accrued expenses		261			267
Operating lease liability, current		160			163
Total current liabilities		2,023			1,219
Operating lease liability		413			545
Total liabilities		2,436			1,764
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2022 and December 31, 2021		—			—
Common stock, $0.0001 par value, 200,000,000 shares authorized; 9,677,734 and 9,715,234 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		1			1
Additional paid in capital		33,159			32,817
Accumulated deficit		(27,388	)		(19,546	)
Total stockholders’ equity		5,772			13,272
Total liabilities and stockholders’ equity	$	8,208		$	15,036


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
Revenue	$	477		$	277		$	1,432		$	868
Cost of sales		414			303			1,176			904
Gross profit (loss)		63			(26	)		256			(36	)
Operating expenses:
Research and development		399			175			1,295			565
Sales and marketing		487			450			2,291			1,095
General and administrative		1,761			578			4,512			1,645
Total operating expenses		2,647			1,203			8,098			3,305
Loss from operations		(2,584	)		(1,229	)		(7,842	)		(3,341	)
Other income (expense):
Interest income (expense)		1			(1,171	)		1			(1,668	)
Change in fair value of derivative liabilities		—			80			—			81
Other income (expense)		(1	)		—			(1	)		158
Total other income (expense)		0			(1,091	)		0			(1,429	)
Net loss	$	(2,584	)	$	(2,320	)	$	(7,842	)	$	(4,770	)
Net loss per share - basic and diluted	$	(0.27	)	$	(0.90	)	$	(0.81	)	$	(1.96	)
Weighted-average number of shares - basic and diluted		9,677,734			2,578,180			9,671,347			2,429,939

VBIO 10-Q

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	Convertible								Additional					Total
	Preferred Stock				Common Stock				Paid-in		Accumulated			Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Deficit
Balances at January 1, 2021		8,908,600	$	1		2,324,479	$	—	$	9,874	$	(11,052	)	$	(1,177	)
Exercise of stock options		—		—		50,000		—		6		—			6
Stock-based compensation expense		—		—		—		—		10		—			10
Net loss		—		—		—		—		—		(1,356	)		(1,356	)
Balances at March 31, 2021		8,908,600	$	1		2,374,479	$	—	$	9,890	$	(12,408	)	$	(2,517	)
Stock-based compensation expense		—		—		—		—		8		—			8
Net loss		—		—		—		—		—		(1,094	)		(1,094	)
Balances at June 30, 2021		8,908,600	$	1		2,374,479	$	—	$	9,898	$	(13,502	)	$	(3,603	)
Exercise of stock options		—		—		346,979		—		56		—			56
Issuance of common stock		—		—		112,500		—		—		—			—
Issuance of warrant		—		—		—		—		52		—			52
Stock-based compensation expense		—		—		—		—		23		—			23
Net loss		—		—		—		—		—		(2,320	)		(2,320	)
Balances at September 30, 2021		8,908,600	$	1		2,833,958	$	—	$	10,029	$	(15,822	)	$	(5,792	)


	As of September 30, 2022 (unaudited)
					Quoted		Significant
					Priced in		other		Significant
					active		observable		unobservable
	Carrying		Fair		markets		inputs		inputs
	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds	$	6,000	$	6,000	$	6,000	$	—	$	—
Total assets	$	6,000	$	6,000	$	6,000	$	—	$	—


	As of December 31, 2021
					Quoted		Significant
					Priced in		other		Significant
					active		observable		unobservable
	Carrying		Fair		markets		inputs		inputs
	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Assets
Money market funds	$	12,793	$	12,793	$	12,793	$	—	$	—
Total assets	$	12,793	$	12,793	$	12,793	$	—	$	—


Fiscal Year
Remainder of 2022	$	34
2023		206
2024		210
2025		178
Total minimum lease payments		628
Less imputed interest		(55	)
Present value of lease payments	$	573


	2021
Expected life (in years)		5.0
Expected volatility	50.29% - 85.37%
Risk-free interest rate	0.89% - 1.26%
Dividend yield		0	%


Class of Shares	Number of Warrants		Exercise Price		Expiration Date
Common Stock		50,000	$	1.04	July 1, 2026
Common Stock		50,000	$	1.04	November 15, 2026
Common Stock		172,680	$	6.25	November 10, 2026


	Outstanding			Exercisable
January 1, 2022		607,220			280,090
Granted		716,630			47,477
Canceled or expired		(18,750	)		(18,750	)
Exercised		(56,250	)		(56,250	)
September 30, 2022		1,248,850			252,567


	Number of
	Shares
January 1, 2022		100,781
Vested		(7,031	)
Cancelled		(93,750	)
September 30, 2022		—


	Three Months Ended September 30,									Nine Months Ended September 30,
	2022			2021			Change			2022			2021			Change
	(unaudited)
Revenue	$	477		$	277		$	200		$	1,432		$	868		$	564
Cost of sales		414			303			111			1,176			904			272
Gross profit (loss)		63			(26	)		89			256			(36	)		292
Operating expenses:
Research and development		399			175			224			1,295			565			730
Sales and marketing		487			450			37			2,291			1,095			1,196
General and administrative		1,761			578			1,183			4,512			1,645			2,867
Total operating expenses		2,647			1,203			1,444			8,098			3,305			4,793
Loss from operations		(2,584	)		(1,229	)		(1,355	)		(7,842	)		(3,341	)		(4,501	)
Other income (expense):
Interest income (expense)		1			(1,171	)		1,172			1			(1,668	)		1,669
Change in fair value of derivative liabilities		—			80			(80	)		—			81			(81	)
Other income (expense)		(1	)		—			(1	)		(1	)		158			(159	)
Total other income (expense)		—			(1,091	)		1,091			—			(1,429	)		1,429
Net loss	$	(2,584	)	$	(2,320	)	$	(264	)	$	(7,842	)	$	(4,770	)	$	(3,072	)



Exhibit Number	Exhibit description	Incorporated by Reference (Form Type)	Filing Date	Filed herewith

2.1†+	Asset Purchase Agreement dated October 7, 2022 by and among the Company, RB Buyer Co, LLC, Reliefband Technologies, LLC, Reliefband’s beneficial owners and the Shareholder Representative.	8-K	10/14/2022

3.1	Amended and Restated Certificate of Incorporation, dated November 12, 2021.	8‑K	11/15/21

3.2	Amended and Restated Bylaws, dated November 12, 2021.	8‑K	11/15/21

4.1	Specimen Stock Certificate.	S‑1/A	9/9/2021

4.2	Form of Representative’s Warrant.	S‑1/A	9/9/2021

4.3	Warrant to Purchase Common Stock issued to Hannover International, Inc., dated July 1, 2021.	S‑1/A	10/29/2021

10.1†	Manufacturing Agreement, dated October 21, 2022, by and between Tivic Health Systems, Inc. and Microart Services Inc.	8-K	10/25/2022

31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.			X

31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.			X

32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.			*

101.INS	Inline XBRL Instance Document.			X

101.SCH	Inline XBRL Taxonomy Extension Schema Document.			X

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.			X

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.			X

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.			X

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104	Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.			X


Remaining lease term (in years)	3.00
Discount rate	6.0	%


†	Certain confidential information contained in this document, marked by [***], has been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type of information that the registrant treats as private or confidential
+	Schedules, exhibits, and similar supporting attachments or agreements to the Purchase Agreement are omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish a supplemental copy of any omitted schedule or similar attachment to the Securities and Exchange Commission upon request.



Date: November 14, 2022	By:	/s/ Jennifer Ernst
		Jennifer Ernst
		Title: Chief Executive Officer
		(Principal Executive Officer)

Date: November 14, 2022	By:	/s/ Veronica Cai
		Veronica Cai
		Title: Chief Financial Officer
		(Principal Financial and Accounting Officer)