VIVOSIM LABS, INC.

Red flags

• Management and the independent auditor concluded that substantial doubt exists about the company’s ability to continue as a going concern.
• The company expects substantial additional operating losses and may require substantial additional funding; the excerpt provides no quantified cash runway or recurring revenue base.
• Receivables have historically come from a relatively small number of customers and third parties, indicating potential customer concentration even though no percentage is disclosed.
• The FXR transaction’s $1.0 million escrow is limited and contingent milestones of up to $50.0 million depend on FXR314 achieving future development, regulatory, and commercial milestones.
• The operating lease carries $447,000 of current lease liabilities as of March 31, 2026, with approximately $459,000 of remaining payments.
• The company relies on third parties for CRO, manufacturing, clinical, data-management, and regulatory functions and notes that some services may have only one or a few providers.