Viking Therapeutics, Inc. [VKTX] Filings

10-Q 1 vktx-20230630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-37355

VIKING THERAPEUTICS, INC.

(Exact name of registrant as specified in its charter)


Delaware		46-1073877
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

9920 Pacific Heights Blvd, Suite 350 San Diego, California		92121
(Address of Principal Executive Offices)		(Zip Code)

(858) 704-4660

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $0.00001 per share	VKTX	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☒	Smaller reporting company	☒

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class

Number of Shares Outstanding
as of July 15, 2023

Common stock, $0.00001 par value

100,028,828

VIKING THERAPEUTICS, INC.

FORM 10-Q FOR THE THREE MONTHS ENDED JUNE 30, 2023

TABLE OF CONTENTS


		Page

Part I.	FINANCIAL INFORMATION		1

Item 1.	Consolidated Financial Statements		1

	Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022		1

	Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2023 and 2022 (unaudited)		2

	Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2023 and 2022 (unaudited)		3

	Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (unaudited)		4

	Notes to Consolidated Financial Statements (unaudited)		5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		19

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		25

Item 4.	Controls and Procedures		26

Part II.	OTHER INFORMATION		27

Item 1.	Legal Proceedings		27

Item 1A.	Risk Factors		27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		60

Item 3.	Defaults Upon Senior Securities		60

Item 4.	Mine Safety Disclosures		60

Item 5.	Other Information		60

Item 6.	Exhibits		61

SIGNATURES			62

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Viking Therapeutics, Inc.

Consolidated Balance Sheets

(In thousands, except share and per share amounts)


	June 30, 2023			December 31, 2022
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	69,519		$	36,632
Short-term investments – available-for-sale		323,401			118,853
Prepaid clinical trial and preclinical study costs		5,491			8,144
Prepaid expenses and other current assets		960			3,411
Total current assets		399,371			167,040
Right-of-use assets		1,273			1,418
Deferred financing costs		16			38
Deposits		33			33
Total assets	$	400,693		$	168,529
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,611		$	8,529
Other accrued liabilities		7,553			13,114
Lease liability, current		314			304
Total current liabilities		13,478			21,947
Lease liability, net of current portion		1,100			1,260
Total long-term liabilities		1,100			1,260
Total liabilities		14,578			23,207
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock, $0.00001 par value: 10,000,000 shares authorized at June 30, 2023 and December 31, 2022; no shares issued and outstanding at June 30, 2023 and December 31, 2022		—			—
Common stock, $0.00001 par value: 300,000,000 shares authorized at June 30, 2023 and December 31, 2022; 100,028,828 shares issued and outstanding at June 30, 2023 and 78,257,258 shares issued and outstanding at December 31, 2022		1			1
Treasury stock at cost, 2,193,251 shares at June 30, 2023 and December 31, 2022		(6,795	)		(6,795	)
Additional paid-in capital		724,754			445,267
Accumulated deficit		(330,805	)		(292,049	)
Accumulated other comprehensive loss		(1,040	)		(1,102	)
Total stockholders’ equity		386,115			145,322
Total liabilities and stockholders’ equity	$	400,693		$	168,529

See accompanying notes to the unaudited consolidated financial statements.

Viking Therapeutics, Inc.

Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenues	$	—		$	—		$	—		$	—
Operating expenses:
Research and development		13,917			13,542			24,925			26,097
General and administrative		9,823			4,089			19,352			7,779
Total operating expenses		23,740			17,631			44,277			33,876
Loss from operations		(23,740	)		(17,631	)		(44,277	)		(33,876	)
Other income (expense):
Amortization of financing costs		(32	)		(12	)		(60	)		(24	)
Interest income, net		4,547			253			5,581			407
Realized loss on investments, net		—			(42	)		—			(42	)
Total other income, net		4,515			199			5,521			341
Net loss		(19,225	)		(17,432	)		(38,756	)		(33,535	)
Other comprehensive loss, net of tax:
Unrealized gain (loss) on securities		(417	)		(31	)		84			(924	)
Foreign currency translation loss		(5	)		(207	)		(22	)		(176	)
Comprehensive loss	$	(19,647	)	$	(17,670	)	$	(38,694	)	$	(34,635	)
Basic and diluted net loss per share	$	(0.19	)	$	(0.23	)	$	(0.44	)	$	(0.43	)
Weighted-average shares used to compute basic and diluted net loss per share		99,010			76,842			88,738			77,126

See accompanying notes to the unaudited consolidated financial statements.

Viking Therapeutics, Inc.

Consolidated Statements of Stockholders’ Equity

(In thousands, except share amounts)

(Unaudited)


	Three-Month Period Ended June 30, 2023
	Common Stock					Additional Paid-In			Accumulated			Accumulated Other Comprehensive			Treasury Stock
	Shares			Amount		Capital			Deficit			Loss			Amount			Total
Balance at March 31, 2023		79,319,081		$	1	$	453,057		$	(311,580	)	$	(618	)	$	(6,795	)	$	134,065
Employee stock-based compensation, net		—			—		4,620			—			—			—			4,620
Shares withheld related to employee tax withholding		(307,781	)		—		(5,408	)		—			—			—			(5,408	)
Issuance of common stock under employee stock plans		1,189,228			—		2,615			—			—			—			2,615
Sale of common stock, net of issuance costs		19,828,300			—		269,870			—			—			—			269,870
Unrealized loss on investments		—			—		—			—			(417	)		—			(417	)
Unrealized currency translation loss		—			—		—			—			(5	)		—			(5	)
Net Loss		—			—		—			(19,225	)		—			—			(19,225	)
Balance at June 30, 2023		100,028,828		$	1	$	724,754		$	(330,805	)	$	(1,040	)	$	(6,795	)	$	386,115


	Six-Month Period Ended June 30, 2023
	Common Stock					Additional Paid-In			Accumulated			Accumulated Other Comprehensive			Treasury Stock
	Shares			Amount		Capital			Deficit			Income (Loss)			Amount			Total
Balance at December 31, 2022		78,257,258		$	1	$	445,267		$	(292,049	)	$	(1,102	)	$	(6,795	)	$	145,322
Employee stock-based compensation, net		—			—		8,189			—			—			—			8,189
Shares withheld related to employee tax withholding		(509,686	)		—		(7,121	)		—			—			—			(7,121	)
Issuance of common stock under employee stock plans		2,274,752			—		6,580			—			—			—			6,580
Sale of common stock, net of issuance costs		20,006,504			—		271,839			—			—			—			271,839
Unrealized gain on investments		—			—		—			—			84			—			84
Unrealized currency translation loss		—			—		—			—			(22	)		—			(22	)
Net Loss		—			—		—			(38,756	)		—			—			(38,756	)
Balance at June 30, 2023		100,028,828		$	1	$	724,754		$	(330,805	)	$	(1,040	)	$	(6,795	)	$	386,115

See accompanying notes to the unaudited consolidated financial statements.

Viking Therapeutics, Inc.

Consolidated Statements of Stockholders’ Equity

(In thousands, except share amounts)

(Unaudited)


	Three-Month Period Ended June 30, 2022
	Common Stock					Additional Paid-In		Accumulated			Accumulated Other Comprehensive			Treasury Stock
	Shares			Amount		Capital		Deficit			Loss			Amount			Total
Balance at March 31, 2022		77,373,712		$	1	$	428,086	$	(239,285	)	$	(1,411	)	$	(5,121	)	$	182,270
Employee stock-based compensation, net		—			—		2,220		—			—			—			2,220
Shares withheld related to employee tax withholding		—			—		—		—			—			—			—
Issuance of common stock under employee stock plans		43,800			—		84		—			—			—			84
Issuance of common stock from warrant exercises		—			—		—		—			—			—			—
Repurchase of common stock		(729,034	)		—		—		—			—			(1,674	)		(1,674	)
Unrealized loss on investments		—			—		—		—			(31	)		—			(31	)
Unrealized currency translation loss		—			—		—		—			(207	)		—			(207	)
Net loss		—			—		—		(17,432	)		—			—			(17,432	)
Balance at June 30, 2022		76,688,478		$	1	$	430,390	$	(256,717	)	$	(1,649	)	$	(6,795	)	$	165,230

Six-Month Period Ended June 30, 2022

Common Stock

Additional
Paid-In

Accumulated

Accumulated Other
Comprehensive

Treasury Stock

Shares

Amount

Capital

Deficit

Income

Amount

Total

Balance at December 31, 2021

78,248,401

Viking Therapeutics, Inc. [VKTX] Filings
10-Q	[2023-07-26]
10-Q	[2023-04-26]
10-K	[2023-02-10]
10-Q	[2022-10-26]
10-Q	[2022-07-27]
10-Q	[2022-04-27]
10-K	[2022-02-09]
10-Q	[2021-11-03]
10-Q	[2021-07-28]
10-Q	[2021-04-28]
10-K	[2021-02-17]
10-Q	[2020-10-28]
10-Q	[2020-07-29]
10-Q	[2020-04-30]
10-K	[2020-02-26]
10-Q	[2019-11-05]
10-Q	[2019-08-01]
10-Q	[2019-05-02]
10-K	[2019-03-13]
10-Q	[2018-11-07]
10-Q	[2018-08-09]
10-Q	[2018-05-09]
10-K	[2018-03-07]
S-1	[2017-12-20]
10-Q	[2017-11-08]
S-1	[2017-10-17]
10-Q	[2017-08-09]
10-Q	[2017-05-10]
10-K	[2017-03-21]
10-Q	[2016-11-10]
S-1	[2016-09-02]
10-Q	[2016-08-11]
10-Q	[2016-05-10]
10-K	[2016-03-08]
S-1	[2015-11-24]
10-Q	[2015-11-05]
10-Q	[2015-08-14]
10-Q	[2015-06-12]
S-1	[2014-07-01]