The Road Ahead: Bright Prospects and New Beginnings

Vivani Medical has set sails towards uncharted territories with the initiation of the NPM-115 clinical program expected later this year. This ambitious journey entails a first-in-human study to evaluate a subdermal GLP-1 implant in obese or overweight patients, aiming to revolutionize chronic weight management. With the FDA’s recent clearance of the Investigational New Drug Application for NPM-119, the company’s momentum is soaring as it enters the clinical phase of development, promising further innovation in the realm of GLP-1 implants.

Steadfast Finances Steer the Ship

Vivani stands strong on a solid financial foundation as it navigates through the second half of 2024, poised to achieve key portfolio milestones. The company’s financial position not only supports its current operations but also hints at a potential for significant growth in the coming years, reassuring investors and stakeholders alike.

A Visionary Leader Paves the Way

Dr. Adam Mendelsohn, Vivani’s Chief Executive Officer, exudes confidence as he charts the course for the company. His words resonate with determination and promise as he highlights the significant progress made during the second quarter towards developing proprietary GLP-1 implants for obesity and chronic weight management. Dr. Mendelsohn’s leadership places Vivani on the cusp of a groundbreaking transition to a clinical-stage development phase, promising a new era of biotechnological advancements.

Innovative Solutions for Persistent Challenges

Vivani’s miniature, long-acting GLP-1 implants offer a beacon of hope to patients grappling with medication non-adherence and tolerability issues in chronic disease management. With statistics revealing alarmingly high rates of patients discontinuing therapy, Vivani’s pipeline emerges as a game-changer, poised to address the adherence and persistence challenges faced by many individuals. The company’s innovative solutions hold the key to unlocking a brighter, more sustainable future for patients battling chronic diseases.

Unveiling Recent Triumphs and Strategic Ventures

In recent months, Vivani has witnessed several triumphs, including positive weight loss data supporting the potential veterinary use of its GLP-1 implants. Collaborative efforts with development partners and regulatory milestones, such as the FDA’s clearance of the IND for NPM-119, underscore Vivani’s commitment to excellence and innovation. The company’s strategic focus on obesity and chronic weight management programs promises groundbreaking developments in the field of biopharmaceuticals.

Exciting Milestones on the Horizon

• Vivani anticipates the initiation of its first-in-human study for the NPM-115 obesity implant program, with groundbreaking results expected in 2025.
• The company plans to showcase its innovative solutions at prestigious industry conferences, setting the stage for further advancements and collaborations in the near future.

Financial Fortitude and Developmental Endeavors

As of June 30, 2024, Vivani boasts a robust cash balance, laying the groundwork for sustained growth and development. Noteworthy figures in research and development expenses and general administrative costs reflect the company’s prudent financial management and strategic foresight, ensuring optimal utilization of resources on its journey to success.

Shedding Light on Vivani Medical, Inc.’s Financial Insights

Streamlined Operations Lead to Improved Bottom Line

Vivani Medical, Inc. recently announced its financial results for the three months ending June 30, 2024. The company reported a net loss of $5.3 million during this period, compared to $6.5 million in the same timeframe last year. This noteworthy decrease in net loss by $1.2 million was primarily driven by a reduction in operating expenses, resulting from staffing cuts and decreased reliance on external legal and professional services.

Other Income Holding Steady

During the three months ending June 30, 2024, Vivani Medical, Inc. reported other income of $0.3 million, slightly down from $0.5 million in the corresponding period in 2023. Although this represents a decrease, the company indicated that the change was not considered significant from a financial perspective.

Enhancing Patient Adherence through Innovative Implants

Vivani Medical, Inc., leveraging its proprietary NanoPortal platform, specializes in developing biopharmaceutical implants designed to deliver drug molecules steadily over extended durations. The company’s lead program, NPM-115, is a miniature, six-month subdermal GLP-1 (exenatide) implant intended for chronic weight management in obese or overweight patients. Additionally, Vivani’s pipeline includes NPM-139, a semaglutide implant also focused on chronic weight management with the added advantage of once-yearly administration.

These NanoPortal implants aim to address medication non-adherence, a pervasive issue impacting approximately 50% of patients, including those with chronic diseases like type 2 diabetes. Vivani’s approach targets the challenges associated with daily or weekly oral and injectable medications, offering a potential solution to improve real-world treatment effectiveness.

Cortigent, Inc.: Advancing Neurostimulation Technologies

Vivani’s wholly-owned subsidiary, Cortigent, Inc., focuses on developing precision neurostimulation systems to aid patients in the recovery of critical body functions. Among Cortigent’s investigational devices is Orion, designed to provide artificial vision to profoundly blind individuals. The subsidiary is also working on a system to accelerate the recovery of arm and hand function in patients partially paralyzed due to stroke. Cortigent has a history of success with Argus II, an implantable visual prosthetic device offering meaningful visual perception to the blind.

Looking Ahead: Future Prospects and Considerations

In closing, while Vivani Medical, Inc. expresses confidence in its differentiated portfolio of long-acting GLP-1 implants, including NPM-115, NPM-139, and NPM-119, the company acknowledges the inherent uncertainties and risks associated with forward-looking statements. Factors such as product development, regulatory approvals, clinical trial outcomes, and market conditions can impact the company’s performance and financial outlook.

Vivani Medical, Inc. encourages stakeholders to carefully consider the risks and uncertainties highlighted in its recent filings with the U.S. Securities and Exchange Commission. The company remains committed to innovation and addressing critical healthcare challenges through its novel implant technologies and neurostimulation advancements.

Financial Revelation: Analyzing Asset Trends

Shifting Sands of Assets

As investors tread cautiously through fiscal terrain, the unveiling of Condensed Consolidated Balance Sheets (unaudited) offers a glimpse into the mystifying world of assets. Bathed in the soft glow of financial figures, these sheets beckon scrutiny, demanding analysis with each line and column.

The Dance of Figures

Like dancers on a grand stage, the numbers in these balance sheets pirouette between June 30 and December 31, bridging the chasm of time with meticulous entries. The year 2024 emerges with a sense of promise, juxtaposed against its predecessor, 2023, in a duet of fiscal evolution.

The Asset Landscape

Traversing the expansive realm of assets, the currents of change ebb and flow. Current assets stand as stalwart sentinels, guarding the gates of liquidity against the backdrop of uncertainty. Cash and cash equivalents emerge as the protagonists in this financial saga, embodying stability in a world of volatile markets.

Unveiling the Financial Tapestry: A Deep Dive into Asset Allocation

Category			Total				Net Total
Prepaid expenses and other current assets			1,418				2,408
Total current assets			26,337				23,062
Property and equipment, net			1,710				1,729
Right-of-use assets			18,801

Delving into the financial landscape, the numbers paint a vivid picture of asset allocation. Prepaid expenses and other current assets stand at a modest 1,418, akin to fresh green shoots on a promising sapling ready to bloom. This segment hints at prudent planning and readiness to seize opportunities.

Zooming out to encompass the total current assets, a sumptuous 26,337 gleams in the sunlight like a hidden treasure trove awaiting discovery. An eclectic mix of resources, this conglomeration embodies stability and foresight, akin to a well-curated garden flourishing with a myriad of botanical wonders.

Transitioning to property and equipment, net, a robust 1,710 stands as a solid pillar, reminiscent of a sturdy oak tree weathering the test of time. This figure reflects tangible assets standing firm against economic storms.

The final piece of the puzzle, right-of-use assets, looms large at 18,801, an imposing monolith exuding strength and dependability. Like an ancient fortress, this asset class provides a steady foundation for future growth and expansion.

Analyzing Financial Performance Through Balance Sheet Data

Restricted Cash Insights

The latest financial data revealed that restricted cash held steady at $1,338. This amount signifies the firm’s commitment to meeting financial obligations without compromising liquidity.

Other Assets Breakdown

Intriguingly, other assets showcased a nuanced landscape with $38 designated for certain assets and $52 for others. This diversification hints at a cautious yet strategic investment approach.

Total Assets Evaluation

The total assets stood at $48,224, underscoring the firm’s robust financial position. This figure not only displays stability but also indicates growth potential in the competitive market environment.

Exploring Liabilities and Stockholders’ Equity

Transitioning to liabilities and stockholders’ equity, the balance sheet’s expectations are met with a vigilant eye towards current liabilities. With a watchful attitude, it’s essential to maintain prudence to ensure sustainable financial operations.

The Financial Landscape: A Deeper Dive into Liabilities

Unpacking Accounts Payable Figures

Accounts payable stand at $645, displaying the financial obligations a company owes to suppliers.

Delving into Accrued Expenses

Accrued expenses amount to $1,660, reflecting the cumulative costs incurred but not yet paid.

Examining the Litigation Accrual Account

At $1,675, litigation accrual demonstrates the provision for potential legal expenses a company might face.

Analyzing Accrued Compensation Expenses

Accrued compensation expense totals $384, presenting anticipated employee-related costs still pending disbursement.

The Weight of Financial Obligations: A Deep Dive into Operating Lease Liabilities

Financial disclosures can often feel like stepping into quicksand – the more figures we encounter, the deeper we sink into the mire of confusion. However, amidst the labyrinth of balance sheets lie nuggets of insight that can illuminate a company’s financial health like a beacon in the night.

The Current Lease Dilemma

Glancing at the figures for current operating lease liabilities, we see a number that tells a tale of contractual commitments and future cash outflows. The amount, standing at a substantial $1,420, can be seen as a pebble in the pond – seemingly insignificant on the surface, yet rippling with implications beneath.

Navigating Total Current Liabilities

Moving onward to the realm of total current liabilities, where the ledger dances with numbers, totaling $5,784. This figure, akin to a sentinel guarding the gates, stands as a measure of the company’s immediate obligations – a sum that cannot be overlooked without consequence.

The Long-Term Lease Landscape

Turning our focus to the expanse of long-term operating lease liabilities, the sum of $18,616 emerges like a monolith against the horizon. This amount, akin to a mountain looming in the distance, represents the weight of future commitments pressing down on the company’s financial shoulders.

The Culmination of Liabilities

As we reach the ultimate convergence of numbers, the total liabilities paint a picture of the company’s financial fortitude – or fragility. At $24,400, this sum stands as a testament to the company’s debt-laden journey, navigating through the peaks and valleys of financial responsibility.

Navigating the Seas of Commitments

Finally, the mention of commitments and contingencies in Note 11 leaves us at a crossroads – a reminder of the uncharted waters ahead. Like a ship sailing through a storm, the company must weather these uncertainties with a steady hand at the helm.

Analyzing Stockholders’ Equity

Stockholders’ equity is a critical measure of a company’s financial health, reflecting the residual value of assets that belong to the shareholders. Let’s delve into the specific components that contribute to stockholders’ equity for this particular company.

Preferred Stock

The company has authorized 10,000 shares of preferred stock, each with a par value of $0.0001 per share. However, as of the most recent reporting period, none of these authorized shares are outstanding, signifying a potential avenue for future fundraising or strategic initiatives.

Common Stock

With 300,000 shares of common stock authorized at a par value of $0.0001 per share, the number of shares issued and outstanding stands at 55,197 and 51,031 as of June 30, 2024, and December 31, 2023, respectively. The figure of common stock outstanding provides insight into the ownership structure of the company and its distribution among investors.

Additional Paid-in Capital

Amounting to $133,588, the additional paid-in capital component of stockholders’ equity captures the excess amount paid by investors over the par value of the company’s stock. This surplus reflects investor confidence and keen interest in the company’s growth prospects beyond its nominal value.

Unveiling the Financial Tapestry: A Deep Dive into Stockholders’ Equity

Accumulated other comprehensive income		63
Accumulated deficit			(109,833)
Total stockholders’ equity			23,824
Total liabilities and stockholders’ equity		$	48,224

VIVANI MEDICAL, INC. Financial Performance Review

Exploring Operational Expenses

As we delve into the financial landscape of VIVANI MEDICAL, INC., a key focal point emerges in the form of operational expenses. These expenses serve as the bedrock of the company’s financial structure, reflecting the intricate balance between cost management and revenue generation.

Analyzing the Years 2023 and 2024

A comparative analysis of the financial years 2023 and 2024 unveils essential insights into VIVANI MEDICAL, INC.’s trajectory. By juxtaposing these two periods, investors can discern patterns, trends, and potential areas for growth or improvement within the company’s financial framework.

VIVANI MEDICAL, INC. AND SUBSIDIARIES   Condensed Consolidated Statements of Operations (unaudited) (in thousands, except per share data)

Unveiling Financial Trends: Comparing R&D with General Administrative Costs

Decoding Research and Development Expenditure

Research and development (R&D) expenses, often deemed the lifeblood of innovation, stood at $3.513 billion, the commitment to groundbreaking discoveries evident. As the numbers climbed to $3.864 billion, it became increasingly apparent that the pursuit of knowledge and progress was unwavering, a testament to a relentless pursuit of betterment.

Subsequently, the R&D allocation surged to $7.239 billion, underscoring the unwavering dedication to advancements that push the boundaries of possibility. The increase to $7.819 billion amplified the resonance of a company committed to forging a trail into the future.

General Administrative Costs Unveiled

However, a divergent narrative unfolded in the realm of general and administrative expenses. Starting at $2.168 billion, efforts to streamline internal operations were evident, albeit overshadowed by contrasting allocations in other areas.

Progressing to $3.139 billion, the cost of maintaining organizational efficiency saw moderate growth. This ascent continued as the figures reached $4.669 billion, a notable increase reflecting the complexities of overseeing and coordinating diverse functions.

Finally, at $5.785 billion, a clear surge in administrative spending painted a picture of management strategies adapting to ever-evolving business landscapes and operational demands.

The Financial Roller Coaster Ride: A Tale of Operating Expenses and Losses

The Cost of Doing Business

Total operating expenses have been on a tumultuous journey, ranging from 5,681 to 13,604 in recent periods. These figures paint a vivid picture of the highs and lows faced by the company in its quest for profitability.

In the Red: Losses Unveiled

Loss from operations mirrors a roller coaster, fluctuating significantly from (5,681) to (13,604) in recent periods. This erratic performance underscores the challenges faced in generating sustainable profits amidst a changing landscape.

A Glimmer of Hope: Other Income

Amidst the sea of losses, there is a small beacon of hope in the form of other income, net. At 325, this figure offers a sliver of optimism amidst the stormy seas, suggesting potential avenues for revenue generation beyond the traditional operations.

Unmasking a Financial Loss: A Closer Look at Recent Figures

Overview of Loss Figures

Recent financial statements reveal staggering figures reflecting a downward spiral – a perplexing narrative that is both alarming and intriguing. Net losses have soared to significant levels, painting a grim picture of the financial landscape.

Net Loss Data

In a jarring revelation, the net losses reported have reached mammoth proportions. With each financial statement released, the numbers seem to spiral downward with no reprieve in sight. The figures are on a relentless descent, ringing alarm bells for investors and stakeholders.

Loss Per Common Share Analysis

A microscopic view of the financial health reveals an equally dismal story. Losses per common share, both basic and diluted, show a downward trend that seems to defy logic. These figures, like a broken compass, point consistently southward, leaving onlookers bewildered.

Historical parallels do little to assuage the concern. Similar downturns in the past have often led to tumultuous periods, where the financial world was put to the test. While each era brings its unique challenges, the current situation echoes past uncertainties, creating a sense of deja vu among seasoned observers.

Implications of Financial Distress

The ramifications of such colossal losses cannot be overlooked. Financial distress of this magnitude can send shockwaves through markets, shaking investor confidence and causing ripples across various sectors. It begs the question – how did we arrive at this juncture, and what steps are needed to navigate these turbulent waters?

Optimism, though scant, remains a flickering light at the end of a dark tunnel. History has shown that resilience and strategic interventions can reverse even the most dire situations. While the road ahead may be fraught with challenges, there is always a glimmer of hope amidst the chaos – a beacon for those who dare to weather the storm.

Unveiling Financial Insights Through Common Share Data

)		$	(0.25	)
Weighted average common shares outstanding – basic and diluted			55,021				50,795
Weighted average common shares outstanding – basic and diluted			53,612				50,748