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SAN DIEGO, CA - VivoSim Labs, Inc. (NASDAQ:VIVS), a biotechnology firm specializing in biological products with a market capitalization of $3.35 million, announced today that it has regained compliance with Nasdaq’s listing requirements. The compliance update follows a period of uncertainty in which the company’s financial status fell short of the Nasdaq Capital Market’s standards.
Previously, on February 19, 2025, VivoSim Labs received a notification from Nasdaq due to its stockholders’ equity falling below the minimum requirement of $2.5 million as reported in its Form 10-Q for the period ending December 31, 2024. Additionally, the company had not met the minimum bid price requirement of $1.00 per share and was at risk of being delisted. According to InvestingPro data, the stock has shown recent signs of recovery with a 15.2% gain over the past week, though it remains 83% below its year-ago levels.
In response, VivoSim Labs requested and attended a hearing before a Nasdaq Hearings Panel on February 27, 2025, where it presented a plan to regain compliance. On March 27, 2025, the Hearings Panel granted the company an extension until April 15, 2025, to meet the listing requirements.
As of April 30, 2025, VivoSim Labs has satisfied the conditions set by the Hearings Panel, achieving compliance with both the minimum bid price and stockholders’ equity requirements. The company will be monitored by a Mandatory Panel for one year to ensure continued compliance with the Nasdaq Listing Rule 5815(d)(4)(B).
The company’s management expressed optimism about the future, emphasizing their commitment to maintaining the standards required for continued listing on the Nasdaq Stock Market. However, they also noted that there is no guarantee that the company will remain in compliance with the applicable Nasdaq continued listing requirements in the future. InvestingPro analysis indicates concerning financial metrics, including a weak financial health score and a current ratio of 0.72, suggesting potential liquidity challenges ahead.
This news marks a positive turn for VivoSim Labs, allowing the company to focus on its core business operations and strategic objectives without the immediate concern of Nasdaq delisting. Investors can look forward to the company’s next earnings report, scheduled for May 22, 2025, which may provide additional clarity on its financial trajectory. The information regarding the regained compliance is based on a press release statement from the company.
In other recent news, VivoSim Labs, formerly known as Organovo Holdings, has launched new AI-driven drug testing models aimed at improving drug discovery by predicting liver and intestinal toxicity. This development aligns with the FDA’s initiative to phase out animal testing, potentially reducing drug development costs and enhancing patient safety. The company asserts that its NAMkind liver model could significantly decrease late-stage clinical trial failures. In a strategic move, Organovo rebranded to VivoSim Labs, reflecting its focus on 3D bioprinting technology, with its stock now trading under the new ticker symbol ’VIVS’.
Additionally, Organovo announced a 1-for-12 reverse stock split to comply with Nasdaq’s minimum bid price requirement, a move that aims to maintain its market listing. The company reported a preliminary cash balance of approximately $11.3 million as of March 31, 2025, with net cash usage estimated between $2.0 and $2.2 million for the quarter. Organovo also anticipates a potential $5 million milestone payment related to a Phase 2 clinical trial for an FXR agonist. The company’s focus remains on developing drugs using its proprietary 3D human tissue technology, a key aspect of its innovative approach to drug development.
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