Nasdaq Delisting Notice Arrives, but Warrant Exercises Push Equity Back Above $2.5M
VIVS is trading near its 52-week low of $0.41 (2.2% above the low) on light trading volume (0.4× avg).
Summary
VivoSim Labs received a Nasdaq delisting notice for falling short of the $2.5M stockholders' equity requirement, but warrant exercises and other recent transactions have since lifted equity back above the threshold. A compliance plan is due by September 3, 2026.
Key Events · Legal and Risk Events · VIVS
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Nasdaq Delisting Notice Received
On July 20, 2026, Nasdaq notified VivoSim that it no longer meets the $2.5M minimum stockholders' equity requirement, citing the $(1.1M) deficit reported in its 10-K. The company has 45 days (until September 3, 2026) to submit a compliance plan.
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Warrant Exercises Add $5.1M to Equity
Between July 15 and 17, 2026, approximately 3.37M of the 3.95M outstanding 2026 Common Warrants were exercised for 6.82M shares of common stock, increasing stockholders' equity by approximately $5.1M.
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Equity Now Exceeds Nasdaq Minimum
As a result of the warrant exercises, the $5M Lilly milestone payment, and the $4M private placement, stockholders' equity now exceeds $2.5M. Outstanding shares stand at 12,057,789.
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Compliance Plan Deadline September 3, 2026
The company must submit a plan to Nasdaq by September 3, 2026. If accepted, Nasdaq may grant an extension until January 16, 2027, to regain compliance. If rejected, the company can appeal to a hearings panel.
Analysis · VIVS · Life Sciences
A Nasdaq delisting notice landed on July 20, 2026, after the 10-K revealed a $1.1M stockholders' deficit. The company now has until September 3, 2026, to deliver a compliance plan. Crucially, the filing also shows that between July 15 and 17, 2026, holders of 3.37M of the 3.95M outstanding 2026 Common Warrants exercised them for 6.82M shares, injecting roughly $5.1M into equity. Together with the $5M Lilly milestone payment and the $4M private placement, stockholders' equity now sits above the $2.5M Nasdaq minimum. While the immediate delisting threat appears contained, the situation remains fragile — the stock hovers near its 52-week low of $0.41, and the recent warrant exercises and placement have materially diluted existing holders. The going concern warning from the 10-K still hangs overhead, and Nasdaq must still accept the company's compliance plan.
At the time of this filing, VIVS was trading at $0.42 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $1.5M. The 52-week trading range was $0.41 to $5.30. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.