Viking Therapeutics, Inc. [VKTX] Filings

10-Q 1 vktx-10q_20220930.htm 10-Q vktx-10q_20220930.htm

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 September 30, 2022


☐	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 October 15, 2022

Common stock, $0.00001 par value

76,688,478

VIKING THERAPEUTICS, INC.

FORM 10-Q FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

TABLE OF CONTENTS

		Page

Part I.	FINANCIAL INFORMATION		1

Item 1.	Consolidated Financial Statements		1

	Consolidated Balance Sheets as of September 30, 2022 (unaudited) and December 31, 2021		1

	Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2022 and 2021 (unaudited)		2

	Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2022 and 2021 (unaudited)		3

	Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (unaudited)		5

	Notes to Consolidated Financial Statements (unaudited)		6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		28

Item 4.	Controls and Procedures		28

Part II.	OTHER INFORMATION		29

Item 1.	Legal Proceedings		29

Item 1A.	Risk Factors		29

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		64

Item 3.	Defaults Upon Senior Securities		64

Item 4.	Mine Safety Disclosures		64

Item 5.	Other Information		64

Item 6.	Exhibits		65

SIGNATURES			66

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

Viking Therapeutics, Inc.

Consolidated Balance Sheets

(In thousands, except share and per share amounts)

	September 30, 2022			December 31, 2021
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	29,408		$	26,371
Short-term investments – available for sale		125,615			175,732
Prepaid clinical trial and preclinical study costs		9,167			7,806
Prepaid expenses and other current assets		956			619
Total current assets		165,146			210,528
Right-of-use assets		1,489			25
Deferred financing costs		15			76
Deposits		33			33
Total assets	$	166,683		$	210,662
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	3,142		$	1,444
Other accrued liabilities		10,620			7,305
Lease liability, current		299			29
Total current liabilities		14,061			8,778
Lease liability, net of current portion		1,337			—
Total long-term liabilities		1,337			—
Total liabilities		15,398			8,778
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock, $0.00001 par value: 10,000,000 shares authorized at September 30, 2022 and December 31, 2021; no shares issued and outstanding at September 30, 2022 and December 31, 2021		—			—
Common stock, $0.00001 par value: 300,000,000 shares authorized at September 30, 2022 and December 31, 2021; 76,688,478 and 78,248,401 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		1			1
Additional paid-in capital		432,330			425,614
Accumulated deficit		(272,490	)		(223,182	)
Accumulated other comprehensive loss		(1,761	)		(549	)
Treasury stock at cost, 2,193,251 shares at September 30, 2022, no shares at December 31, 2021		(6,795	)		—
Total stockholders’ equity		151,285			201,884
Total liabilities and stockholders’ equity	$	166,683		$	210,662

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 September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Revenues	$	—		$	—		$	—		$	—
Operating expenses:
Research and development		11,959			10,795			38,056			35,134
General and administrative		4,237			2,608			12,016			8,038
Total operating expenses		16,196			13,403			50,072			43,172
Loss from operations		(16,196	)		(13,403	)		(50,072	)		(43,172	)
Other income (expense):
Amortization of financing costs		(27	)		35			(51	)		(6	)
Interest income, net		450			125			857			544
Realized loss on investments, net		—			—			(42	)		—
Total other income, net		423			160			764			538
Net loss		(15,773	)		(13,243	)		(49,308	)		(42,634	)
Other comprehensive loss, net of tax:
Unrealized gain (loss) on securities		111			19			(813	)		(116	)
Foreign currency translation loss		(223	)		—			(399	)		—
Comprehensive loss	$	(15,885	)	$	(13,224	)	$	(50,520	)	$	(42,750	)

Basic and diluted net loss per common share	$	(0.21	)	$	(0.17	)	$	(0.64	)	$	(0.55	)
Weighted-average shares used to compute basic and diluted net loss per share		76,505			78,009			76,917			76,908

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 September 30, 2022
	Common Stock				Additional Paid-In		Accumulated			Accumulated Other Comprehensive			Treasury Stock
	Shares		Amount		Capital		Deficit			Loss			Amount			Total
Balance at June 30, 2022		76,688,478	$	1	$	430,390	$	(256,717	)	$	(1,649	)	$	(6,795	)	$	165,230
Employee stock-based compensation		—		—		1,940		—			—			—			1,940
Issuance of common stock under employee stock plans		—		—		—		—			—			—			—
Repurchase of common stock		—		—		—		—			—			—			—
Unrealized gain on investments		—		—		—		—			111			—			111
Unrealized currency translation gains		—		—		—		—			(223	)		—			(223	)
Net loss		—		—		—		(15,773	)		—			—			(15,773	)
Balance at September 30, 2022		76,688,478	$	1	$	432,330	$	(272,490	)	$	(1,761	)	$	(6,795	)	$	151,285

	Nine-Month Period Ended September 30, 2022
	Common Stock					Additional Paid-In			Accumulated			Accumulated Other Comprehensive			Treasury Stock
	Shares			Amount		Capital			Deficit			Income (Loss)			Amount			Total
Balance at December 31, 2021		78,248,401		$	1	$	425,614		$	(223,182	)	$	(549	)	$	—		$	201,884
Employee stock-based compensation		—			—		6,517			—			—			—			6,517
Shares withheld related to employee tax withholding		(105,475	)		—		(499	)		—			—			—			(499	)
Issuance of common stock under employee stock plans		266,303			—		84			—			—			—			84
Issuance of common stock from warrant exercises		472,500			—		614			—			—			—			614
Repurchase of common stock		(2,193,251	)		—		—			—			—			(6,795	)		(6,795	)
Unrealized loss on investments		—			—		—			—			(813	)		—			(813	)
Unrealized currency translation gains		—			—		—			—			(399	)		—			(399	)
Net loss		—			—		—			(49,308	)		—			—			(49,308	)
Balance at September 30, 2022		76,688,478		$	1	$	432,330		$	(272,490	)	$	(1,761	)	$	(6,795	)	$	151,285

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 September 30, 2021
	Common Stock					Additional Paid-In			Accumulated			Accumulated Other Comprehensive
	Shares			Amount		Capital			Deficit			Loss			Total
Balance at June 30, 2021		78,189,814		$	1	$	422,745		$	(197,583	)	$	(189	)	$	224,974
Employee stock-based compensation		—			—		1,599			—			—			1,599
Shares withheld related to employee tax withholding		(36,009	)		—		(234	)		—			—			(234	)
Issuance of common stock under employee stock plans		81,084			—		6			—			—			6
Unrealized gain on investments		—			—		—			—			19			19
Net loss		—			—		—			(13,243	)		—			(13,243	)
Balance at September 30, 2021		78,234,889		$	1	$	424,116		$	(210,826	)	$	(170	)	$	213,121

	Nine-Month Period Ended September 30, 2021
	Common Stock					Additional Paid-In			Accumulated			Accumulated Other Comprehensive
	Shares			Amount		Capital			Deficit			Income			Total
Balance at December 31, 2020		73,215,940		$	1	$	412,589		$	(168,192	)	$	(54	)	$	244,344
Employee stock-based compensation		—			—		4,667			—			—			4,667
Shares withheld related to employee tax withholding		(117,025	)		—		(707	)		—			—			(707	)
Issuance of common stock under employee stock plans		407,662			—		504			—			—			504
Issuance of common stock from warrant exercises		4,728,312			—		7,063			—			—			7,063
Unrealized loss on investments		—			—		—			—			(116	)		(116	)
Net loss		—			—		—			(42,634	)		—			(42,634	)
Balance at September 30, 2021		78,234,889		$	1	$	424,116		$	(210,826	)	$	(170	)	$	213,121

See accompanying notes to the unaudited consolidated financial statements.

Viking Therapeutics, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Nine Months Ended September 30,
	2022			2021
Cash flows from operating activities
Net loss	$	(49,308	)	$	(42,634	)
Adjustments to reconcile net loss to net cash used in operating activities
Amortization of investment premiums, net		1,270			3,151
Amortization of financing costs		51			6
Stock-based compensation		6,517			4,667
Amortization of right-of-use assets		219			220
Realized loss on investment		42			—
Interest expense related to operating lease liability		29			11
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(1,698	)		(404	)
Accrued interest, net of interest received on maturity of investments		499			582
Accounts payable		1,698			(1,154	)
Other accrued liabilities		3,315

Viking Therapeutics, Inc. [VKTX] Filings
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]