Company Quick10K Filing
VTV Therapeutics
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 -0 $-0
10-Q 2019-10-30 Quarter: 2019-09-30
10-Q 2019-07-31 Quarter: 2019-06-30
10-Q 2019-05-01 Quarter: 2019-03-31
10-K 2019-02-26 Annual: 2018-12-31
10-Q 2018-11-08 Quarter: 2018-09-30
10-Q 2018-08-03 Quarter: 2018-06-30
10-Q 2018-05-15 Quarter: 2018-03-31
10-K 2018-02-27 Annual: 2017-12-31
10-Q 2017-11-01 Quarter: 2017-09-30
10-Q 2017-08-02 Quarter: 2017-06-30
10-Q 2017-05-03 Quarter: 2017-03-31
10-K 2017-02-24 Annual: 2016-12-31
10-Q 2016-11-03 Quarter: 2016-09-30
10-Q 2016-08-02 Quarter: 2016-06-30
10-Q 2016-05-13 Quarter: 2016-03-31
10-K 2016-03-04 Annual: 2015-12-31
10-Q 2015-11-13 Quarter: 2015-09-30
10-Q 2015-09-14 Quarter: 2015-06-30
8-K 2019-12-23 Off-BS Arrangement, Sale of Shares
8-K 2019-12-18
8-K 2019-11-26 Sale of Shares
8-K 2019-11-25 Officers
8-K 2019-11-12 Sale of Shares
8-K 2019-10-30 Earnings, Exhibits
8-K 2019-10-24 Sale of Shares
8-K 2019-09-26 Enter Agreement, Off-BS Arrangement, Sale of Shares
8-K 2019-09-18 Sale of Shares
8-K 2019-09-11 Officers
8-K 2019-09-11 Sale of Shares
8-K 2019-09-04 Sale of Shares
8-K 2019-08-06 Sale of Shares
8-K 2019-07-31 Earnings, Exhibits
8-K 2019-07-09 Sale of Shares
8-K 2019-06-25 Sale of Shares
8-K 2019-05-15 Sale of Shares
8-K 2019-04-29 Earnings, Shareholder Vote, Exhibits
8-K 2019-03-18 Enter Agreement, Off-BS Arrangement, Sale of Shares, Other Events, Exhibits
8-K 2019-03-07 Officers, Exhibits
8-K 2019-02-28 Sale of Shares
8-K 2019-02-27 Earnings, Exhibits
8-K 2019-02-19 Regulation FD, Exhibits
8-K 2019-02-14 Sale of Shares
8-K 2019-01-29 Sale of Shares
8-K 2019-01-16 Sale of Shares
8-K 2018-12-27 Sale of Shares
8-K 2018-12-11 Enter Agreement, Off-BS Arrangement, Sale of Shares, Other Events
8-K 2018-11-29 Sale of Shares
8-K 2018-11-08 Earnings, Exhibits
8-K 2018-10-29 Exhibits
8-K 2018-09-28 Officers
8-K 2018-09-27 Sale of Shares
8-K 2018-09-17 Other Events
8-K 2018-09-06 Sale of Shares
8-K 2018-08-10 Sale of Shares
8-K 2018-08-03 Earnings, Exhibits
8-K 2018-07-30 Enter Agreement, Off-BS Arrangement, Sale of Shares
8-K 2018-07-06 Sale of Shares
8-K 2018-06-18 Sale of Shares
8-K 2018-06-12 Regulation FD, Exhibits
8-K 2018-05-31 Enter Agreement
8-K 2018-05-24 Sale of Shares
8-K 2018-05-15 Earnings, Exhibits
8-K 2018-04-30 Shareholder Vote
8-K 2018-04-23 Officers
8-K 2018-04-09 Regulation FD, Exhibits
8-K 2018-02-27 Earnings, Exhibits
VTVT 2019-09-30
Part I - Financial Information
Note 1: Description of Business, Basis of Presentation and Going Concern
Note 2: Summary of Significant Accounting Policies
Note 3: Collaboration Agreements
Note 4: Share-Based Compensation
Note 5: Notes Payable
Note 6: Commitments and Contingencies
Note 7: Leases
Note 8: Redeemable Noncontrolling Interest
Note 9: Related-Party Transactions
Note 10: Income Taxes
Note 11: Net Loss per Share
Note 12: Restructuring
Note 13: Fair Value of Financial Instruments
Note 14: Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 vtvt-ex101_126.htm
EX-10.2 vtvt-ex102_125.htm
EX-31.1 vtvt-ex311_6.htm
EX-31.2 vtvt-ex312_9.htm
EX-32.1 vtvt-ex321_8.htm
EX-32.2 vtvt-ex322_7.htm

VTV Therapeutics Earnings 2019-09-30

VTVT 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
NTEC 47 12 0 0 -21 -21 -21 1.0 -44%
GRFS 12,477 7,780 0 0 0 0 -592 0%
MRKR 55 4 0 0 -151 -151 -53 0.4 -274%
TRIL 55 14 0 0 0 0 -0 0%
AZN 60,651 46,607 0 0 0 0 -893 0%
ZOM 9 2 0 0 -24 -24 -6 0.2 -258%
VTVT 9 22 11 0 -7 -4 6 0% -1.4 -76%
XTLB 9 0 0 0 0 -1 0%
AFMD 116 0 0 0 0 -0 0%
OASM 568 223 0 0 0 0 -0 0%

10-Q 1 vtvt-10q_20190930.htm 10-Q vtvt-10q_20190930.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, 2019

Or

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: 001-37524

 

vTv Therapeutics Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

47-3916571

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

4170 Mendenhall Oaks Pkwy

High Point, NC

 

27265

(Address of principal executive offices)

 

(Zip Code)

(336) 841-0300

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

 

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A common stock, par value $0.01 per share

VTVT

NASDAQ Capital Market

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  

 

Class of Stock

 

Shares Outstanding as of October 30, 2019

 

Class A common stock, par value $0.01 per share

 

 

36,808,933

 

Class B common stock, par value $0.01 per share

 

 

23,094,221

 

 

 


 

vTv THERAPEUTICS INC. AND SUBSIDIARIES

INDEX TO FORM 10-Q

FOR THE QUARTER ENDED September 30, 2019

 

 

 

 

 

PAGE
NUMBER

 

 

 

 

PART I – FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

  

Condensed Consolidated Balance Sheets as of September 30, 2019 (Unaudited) and December 31, 2018

  

4

 

 

 

 

 

 

 

Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018

 

5

 

 

 

 

 

 

 

Unaudited Condensed Consolidated Statement of Changes in Redeemable Noncontrolling Interest and Stockholders’ Deficit for the three and nine months ended September 30, 2019 and 2018

 

6

 

 

 

 

 

 

 

Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018

 

8

 

 

 

 

 

 

 

Notes to Unaudited Consolidated Financial Statements

 

9

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

23

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

31

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

32

 

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

32

 

 

 

 

 

Item 1A.

 

Risk Factors

 

33

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

33

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

33

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

33

 

 

 

 

 

Item 5.

 

Other Information

 

33

 

 

 

 

 

Item 6.

 

Exhibits

 

34

 

 

 

 

 

 

 

Signatures

 

35

 

 

2


 

PART I – FINANCIAL INFORMATION

The financial statements and other disclosures contained in this report include those of vTv Therapeutics Inc. (“we”, the “Company” or the “Registrant”), which is the registrant, and those of vTv Therapeutics LLC (“vTv LLC”), which is the principal operating subsidiary of the Registrant.  Unless the context suggests otherwise, references in this Quarterly Report on Form 10-Q to the “Company”, “we”, “us” and “our” refer to vTv Therapeutics Inc. and its consolidated subsidiaries.

 

 

3


 

vTv Therapeutics Inc.

Condensed Consolidated Balance Sheets

(in thousands, except number of shares and per share data)

 

 

September 30,

 

 

December 31,

 

 

2019

 

 

2018

 

 

(Unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

2,436

 

 

$

1,683

 

Accounts receivable, net

 

10

 

 

 

 

Prepaid expenses and other current assets

 

870

 

 

 

666

 

Current deposits

 

251

 

 

 

1,124

 

Total current assets

 

3,567

 

 

 

3,473

 

Restricted cash and cash equivalents, long-term

 

2,500

 

 

 

2,500

 

Property and equipment, net

 

46

 

 

 

70

 

Operating lease right-of-use assets

 

85

 

 

 

 

Long-term investments

 

2,480

 

 

 

2,480

 

Long-term deposits

 

444

 

 

 

36

 

Total assets

$

9,122

 

 

$

8,559

 

Liabilities, Redeemable Noncontrolling Interest and Stockholders’ Deficit

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$

6,898

 

 

$

7,702

 

Operating lease liabilities

 

91

 

 

 

 

Current portion of deferred revenue

 

31

 

 

 

1,752

 

Current portion of notes payable

 

7,442

 

 

 

9,383

 

Total current liabilities

 

14,462

 

 

 

18,837

 

Notes payable, net of current portion

 

1,363

 

 

 

6,330

 

Deferred revenue, net of current portion

 

1,040

 

 

 

1,067

 

Warrant liability, related party

 

1,878

 

 

 

2,436

 

Other liabilities

 

260

 

 

 

260

 

Total liabilities

 

19,003

 

 

 

28,930

 

Commitments and contingencies

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

37,268

 

 

 

62,482

 

Stockholders’ deficit:

 

 

 

 

 

 

 

Class A Common Stock, $0.01 par value; 100,000,000 shares authorized, 35,439,070

   and 20,347,065 shares outstanding as of September 30, 2019 and December 31, 2018,

   respectively

 

354

 

 

 

203

 

Class B Common Stock, $0.01 par value; 100,000,000 shares authorized, and 23,094,221

  outstanding as of September 30, 2019 and December 31, 2018

 

232

 

 

 

232

 

Additional paid-in capital

 

175,990

 

 

 

150,595

 

Accumulated deficit

 

(223,725

)

 

 

(233,883

)

Total stockholders’ deficit attributable to vTv Therapeutics Inc.

 

(47,149

)

 

 

(82,853

)

Total liabilities, redeemable noncontrolling interest and stockholders’ deficit

$

9,122

 

 

$

8,559

 

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

 

 

4


 

vTv Therapeutics Inc.

Condensed Consolidated Statements of Operations - Unaudited

(in thousands, except number of shares and per share data)

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue

$

8

 

 

$

3,375

 

 

$

2,757

 

 

$

7,912

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

3,663

 

 

 

2,698

 

 

 

10,713

 

 

 

20,235

 

General and administrative

 

1,770

 

 

 

2,158

 

 

 

6,548

 

 

 

7,150

 

Total operating expenses

 

5,433

 

 

 

4,856

 

 

 

17,261

 

 

 

27,385

 

Operating loss

 

(5,425

)

 

 

(1,481

)

 

 

(14,504

)

 

 

(19,473

)

Other income

 

 

 

 

10

 

 

 

1

 

 

 

46

 

Other (expense) income – related party

 

(146

)

 

 

319

 

 

 

1,050

 

 

 

610

 

Interest income

 

15

 

 

 

13

 

 

 

41

 

 

 

47

 

Interest expense

 

(404

)

 

 

(822

)

 

 

(1,544

)

 

 

(2,547

)

Loss before income taxes and noncontrolling interest

 

(5,960

)

 

 

(1,961

)

 

 

(14,956

)

 

 

(21,317

)

Income tax provision

 

 

 

 

 

 

 

100

 

 

 

200

 

Net loss before noncontrolling interest

 

(5,960

)

 

 

(1,961

)

 

 

(15,056

)

 

 

(21,517

)

Less:  net loss attributable to noncontrolling interest

 

(2,352

)

 

 

(1,165

)

 

 

(6,411

)

 

 

(14,697

)

Net loss attributable to vTv Therapeutics Inc.

$

(3,608

)

 

$

(796

)

 

$

(8,645

)

 

$

(6,820

)

Net loss attributable to vTv Therapeutics Inc. common shareholders

$

(4,115

)

 

$

(796

)

 

$

(12,880

)

 

$

(6,820

)

Net loss per share of vTv Therapeutics Inc. Class A Common

   Stock, basic and diluted

$

(0.13

)

 

$

(0.06

)

 

$

(0.46

)

 

$

(0.64

)

Weighted-average number of vTv Therapeutics Inc. Class A

   Common Stock, basic and diluted

 

32,126,130

 

 

 

12,305,949

 

 

 

27,709,486

 

 

 

10,701,599

 

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

 

 

5


 

vTv Therapeutics Inc.

Condensed Consolidated Statement of Changes in Redeemable Noncontrolling Interest and Stockholders’ Deficit - Unaudited

(in thousands, except number of shares)

 

For the three months ended September 30, 2019

 

 

 

 

 

 

Class A Common Stock

 

 

Class B Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable

Noncontrolling

Interest

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-in

Capital

 

 

Accumulated Deficit

 

 

Total Stockholders' Deficit

 

Balance at June 30, 2019

$

37,060

 

 

 

29,826,782

 

 

$

298

 

 

 

23,094,221

 

 

$

232

 

 

$

167,125

 

 

$

(217,557

)

 

$

(49,902

)

Net loss

 

(2,352

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,608

)

 

 

(3,608

)

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

413

 

 

 

 

 

 

413

 

Issuance of Class A Common Stock

   to a related party under the

   Letter Agreements

 

 

 

 

5,612,288

 

 

 

56

 

 

 

 

 

 

 

 

 

8,944

 

 

 

 

 

 

9,000

 

Issuance of Letter Agreement

   and warrants to purchase Class

   A Common Stock - related party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(492

)

 

 

 

 

 

(492

)

Change in redemption value of

   noncontrolling interest

 

2,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,560

)

 

 

(2,560

)

Balances at September 30, 2019

$

37,268

 

 

 

35,439,070

 

 

$

354

 

 

 

23,094,221

 

 

$

232

 

 

$

175,990

 

 

$

(223,725

)

 

$

(47,149

)

 

For the three months ended September 30, 2018

 

 

 

 

 

 

Class A Common Stock

 

 

Class B Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable

Noncontrolling

Interest

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-in

Capital

 

 

Accumulated Deficit

 

 

Total Stockholders' Deficit

 

Balances at June 30, 2018

$

39,413

 

 

 

10,871,498

 

 

$

109

 

 

 

23,094,221

 

 

$

232

 

 

$

134,587

 

 

$

(206,525

)

 

$

(71,597

)

Net loss

 

(1,165

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(796

)

 

 

(796

)

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

579

 

 

 

 

 

 

579

 

Issuance of Class A Common Stock

   to a related party under the

   Letter Agreements

 

 

 

 

4,900,951

 

 

 

49

 

 

 

 

 

 

 

 

 

9,951

 

 

 

 

 

 

10,000

 

Issuance of Letter Agreement and

   warrants to purchase Class A

   Common stock - related party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(500

)

 

 

 

 

 

(500

)

Change in redemption value of

   noncontrolling interest

 

(18,336

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,336

 

 

 

18,336

 

Balances at September 30, 2018

$

19,912

 

 

 

15,772,449

 

 

$

158

 

 

 

23,094,221

 

 

$

232

 

 

$

144,617

 

 

$

(188,985

)

 

$

(43,978

)

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

 

6


 

vTv Therapeutics Inc.

Condensed Consolidated Statement of Changes in Redeemable Noncontrolling Interest and Stockholders’ Deficit - Unaudited

(in thousands, except number of shares)

 

For the nine months ended September 30, 2019

 

 

 

 

 

 

Class A Common Stock

 

 

Class B Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable

Noncontrolling

Interest

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-in

Capital

 

 

Accumulated Deficit

 

 

Total Stockholders' Deficit

 

Balances at December 31, 2018

$

62,482

 

 

 

20,347,065

 

 

$

203

 

 

 

23,094,221

 

 

$

232

 

 

$

150,595

 

 

$

(233,883

)

 

$

(82,853

)

Net loss

 

(6,411

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,645

)

 

 

(8,645

)

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,095

 

 

 

 

 

 

1,095

 

Issuance of Class A Common Stock

   under registered direct offering

 

 

 

 

3,636,364

 

 

 

37

 

 

 

 

 

 

 

 

 

5,406

 

 

 

 

 

 

5,443

 

Issuance of Class A Common Stock

   to a related party under the Letter

   Agreements

 

 

 

 

11,443,975

 

 

 

114

 

 

 

 

 

 

 

 

 

19,386

 

 

 

 

 

 

19,500

 

Issuance of Letter Agreement and warrants to

   purchase Class A Common Stock -

   related party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(492

)

 

 

 

 

 

(492

)

Vesting of restricted stock units

 

 

 

 

11,666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in redemption value of

   noncontrolling interest

 

(18,803

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,803

 

 

 

18,803

 

Balances at September 30, 2019

$

37,268

 

 

 

35,439,070

 

 

$

354

 

 

 

23,094,221

 

 

$

232

 

 

$

175,990

 

 

$

(223,725

)

 

$

(47,149

)

 

 

 

For the nine months ended September 30, 2018

 

 

 

 

 

 

Class A Common Stock

 

 

Class B Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable

Noncontrolling

Interest

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-in

Capital

 

 

Accumulated Deficit

 

 

Total Stockholders' Deficit

 

Balances at December 31, 2017

$

131,440

 

 

 

9,693,254

 

 

$

97

 

 

 

23,119,246

 

 

$

232

 

 

$

127,682

 

 

$

(279,058

)

 

$

(151,047

)

Net loss

 

(14,697

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,820

)

 

 

(6,820

)

Cumulative effect of accounting

   change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

213

 

 

 

213

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,345

 

 

 

 

 

 

2,345

 

Exchange of Class B Common Stock

   for Class A Common Stock

 

(151

)

 

 

25,025

 

 

 

 

 

 

(25,025

)

 

 

 

 

 

151

 

 

 

 

 

 

151

 

Issuance of Class A Common Stock

   to a related party under the

   Letter Agreements

 

 

 

 

6,042,503

 

 

 

61

 

 

 

 

 

 

 

 

 

14,939

 

 

 

 

 

 

15,000

 

Issuance of Letter Agreement and

   warrants to purchase Class A

   Common stock - related party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(500

)

 

 

 

 

 

(500

)

Vesting of restricted stock units

 

 

 

 

11,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in redemption value of

   noncontrolling interest

 

(96,680

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

96,680

 

 

 

96,680

 

Balances at September 30, 2018

$

19,912

 

 

 

15,772,449

 

 

$

158

 

 

 

23,094,221

 

 

$

232

 

 

$

144,617

 

 

$

(188,985

)

 

$

(43,978

)

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

 

 

7


 

vTv Therapeutics Inc.

Condensed Consolidated Statements of Cash Flows - Unaudited

(in thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss before noncontrolling interest

 

$

(15,056

)

 

$

(21,517

)

Adjustments to reconcile net loss before noncontrolling interest to net cash used in operating

   activities:

 

 

 

 

 

 

 

 

(Gain) loss on disposal of property and equipment, net

 

 

(312

)

 

 

(12

)

Depreciation expense

 

 

24

 

 

 

111

 

Share-based compensation expense

 

 

1,095

 

 

 

2,345

 

Change in fair value of warrants, related party

 

 

(1,050

)

 

 

(610

)

Amortization of debt discount

 

 

450

 

 

 

795

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(8

)

 

 

8,000

 

Prepaid expenses and other assets

 

 

659

 

 

 

(1,475

)

Long-term deposits

 

 

(408

)

 

 

2,256

 

Accounts payable and accrued expenses

 

 

(788

)

 

 

(4,936

)

Deferred revenue

 

 

(1,748

)

 

 

(5,912

)

Other liabilities

 

 

 

 

 

(32

)

Net cash used in operating activities

 

 

(17,142

)

 

 

(20,987

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Proceeds from sale of assets

 

 

310

 

 

 

12

 

Purchases of property and equipment

 

 

 

 

 

(5

)

Net cash provided by investing activities

 

 

310

 

 

 

7

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of Class A Common Stock to a related party under the Letter Agreements

 

 

19,500

 

 

 

15,000

 

Proceeds from issuance of Class A Common Stock, net of offering costs

 

 

5,443

 

 

 

 

Proceeds from debt issuance

 

 

500

 

 

 

500

 

Repayment of notes payable

 

 

(7,858

)

 

 

(2,674

)

Net cash provided by financing activities

 

 

17,585

 

 

 

12,826

 

Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

 

 

753

 

 

 

(8,154

)

Total cash, cash equivalents and restricted cash and cash equivalents, beginning of period

 

 

4,183

 

 

 

14,420

 

Total cash, cash equivalents and restricted cash and cash equivalents, end of period

 

$

4,936

 

 

$

6,266

 

 

 

 

 

 

 

 

 

 

Non-cash activities:

 

 

 

 

 

 

 

 

Change in redemption value of noncontrolling interest

 

$

(18,803

)

 

$

(96,680

)

Exchange of vTv Therapeutics Inc. Class B Common Stock and vTv Therapeutics, LLC

   member units for vTv Therapeutics Inc. Class A Common Stock

 

$

 

 

$

151

 

Issuance of Letter Agreements and warrants to purchase vTv Therapeutics Inc. Class A

    Common Stock to a related party

 

$

492

 

 

$

500

 

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

 

 

8


 

vTv Therapeutics Inc.

Notes to Condensed Consolidated Financial Statements – Unaudited

(dollar amounts are in thousands, unless otherwise noted)

 

 

Note 1:

Description of Business, Basis of Presentation and Going Concern

Description of Business

vTv Therapeutics Inc. (the “Company,” the “Registrant,” “we” or “us”) was incorporated in the state of Delaware in April 2015. The Company was formed to discover and develop orally administered small molecule drug candidates to fill significant unmet medical needs.

Principles of Consolidation

vTv Therapeutics Inc. is a holding company and its principal asset is a controlling equity interest in vTv Therapeutics LLC (“vTv LLC”), the Company’s principal operating subsidiary, which is a clinical-stage biopharmaceutical company engaged in the discovery and development of orally administered small molecule drug candidates to fill significant unmet medical needs.

The Company has determined that vTv LLC is a variable-interest entity (“VIE”) for accounting purposes and that vTv Therapeutics Inc. is the primary beneficiary of vTv LLC because (through its managing member interest in vTv LLC and the fact that the senior management of vTv Therapeutics Inc. is also the senior management of vTv LLC) it has the power and benefits to direct all of the activities of vTv LLC, which include those that most significantly impact vTv LLC’s economic performance. vTv Therapeutics Inc. has therefore consolidated vTv LLC’s results pursuant to Accounting Standards Codification Topic 810, “Consolidation” in its Condensed Consolidated Financial Statements. As of September 30, 2019, various holders own non-voting interests in vTv LLC, representing a 39.5% economic interest in vTv LLC, effectively restricting vTv Therapeutics Inc.’s interest to 60.5% of vTv LLC’s economic results, subject to increase in the future, should vTv Therapeutics Inc. purchase additional non-voting common units (“vTv Units”) of vTv LLC, or should the holders of vTv Units decide to exchange such units (together with shares of Class B Common Stock) for shares of Class A Common Stock (or cash) pursuant to the Exchange Agreement (as defined in Note 9). vTv Therapeutics Inc. has provided financial and other support to vTv LLC in the form of its purchase of vTv Units with the net proceeds of the Company’s initial public offering (“IPO”) in 2015 and its registered direct offering in March 2019, its agreeing to be a co-borrower under the Venture Loan and Security Agreement (the “Loan Agreement”) with Horizon Technology Finance Corporation and Silicon Valley Bank (together, the “Lenders”) which was entered into in 2016, and its entrance into the letter agreements, dated as of December 5, 2017, July 30, 2018, December 11, 2018, March 18, 2019, and September 26, 2019 with MacAndrews and Forbes Group LLC (the “Letter Agreements”). vTv Therapeutics Inc. will not be required to provide financial or other support for vTv LLC outside of its obligations pertaining to the Loan Agreement as a co-borrower. However, vTv Therapeutics Inc. will control its business and other activities through its managing member interest in vTv LLC, and its management is the management of vTv LLC. The creditors of vTv LLC do not have any recourse to the general credit of vTv Therapeutics Inc. except as allowed under the provisions of the Loan Agreement. Nevertheless, because vTv Therapeutics Inc. will have no material assets other than its interests in vTv LLC, any financial difficulties at vTv LLC could result in vTv Therapeutics Inc. recognizing a loss.

Going Concern and Liquidity

To date, the Company has not generated any product revenue and has not achieved profitable operations.  The continuing development of our drug candidates will require additional financing.  From its inception through September 30, 2019, the Company has funded its operations primarily through a combination of private placements of common and preferred equity, research collaboration agreements, upfront and milestone payments for license agreements, debt and equity financings and the completion of its IPO in August 2015.  As of September 30, 2019, the Company had an accumulated deficit of $223.7 million and has generated net losses in each year of its existence.  

In March 2019, the Company completed a registered direct offering through which it sold 3,636,364 shares of its Class A Common Stock and raised net proceeds of approximately $5.4 million, net of related transaction costs.  Further, the Company entered into an additional Letter Agreement with MacAndrews and Forbes Group LLC (the “March 2019 Letter Agreement”) under which it may sell, at the Company’s option, up to 5,454,546 shares of its Class A Common Stock at a fixed price of $1.65 per share for aggregate proceeds of up to $9.0 million during a one-year period after the date of the March 2019 Letter Agreement (the “Investment Period”). The March 2019 Letter Agreement also permits MacAndrews and Forbes Group LLC to exercise an option to purchase Class A Common Stock at the same price up to three times during the Investment Period.

9


 

In September 2019, the Company entered into another Letter Agreement with MacAndrews and Forbes Group LLC (the “September 2019 Letter Agreement”) under which it may sell, at the Company’s option, up to 6,849,315 shares of its Class A Common Stock at a fixed price of $1.46 per share for aggregate proceeds of $10.0 million during a one-year period after the date of the September 2019 Letter Agreement.  The September 2019 Letter Agreement also permits MacAndrews and Forbes Group LLC to exercise an option to purchase Class A Common Stock at the same price up to three times during the one-year period after the date of the September 2019 Letter Agreement. In consideration for entering into the September 2019 Letter Agreement, the Company issued to MacAndrews and Forbes Group LLC warrants to purchase 400,990 shares of its Class A Common Stock at a price of $1.68 per share.

As of September 30, 2019, the Company’s liquidity sources included cash and cash equivalents of $2.4 million and $8.0 million of remaining funds available under the Letter Agreements.  Based on the Company’s current operating plan, management believes that its current cash and cash equivalents and the remaining funds available under the Letter Agreements will allow the Company to meet its liquidity requirements into the fourth quarter of 2019, which is less than twelve months from the issuance of these Condensed Consolidated Financial Statements.  These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

The Company has completed enrollment in a Phase 2 clinical trial of TTP399 in patients with type 1 diabetes and continues to enroll patients in a Phase 2 trial to evaluate azeliragon as a potential treatment of mild-AD in patients with type 2 diabetes.  In order to complete these trials and continue its operations, the Company will require additional financing. The Company is evaluating several financing strategies to provide continued funding which may include additional direct equity investments or future public offerings of our common stock.  The timing and availability of such financing is not yet known.

The Company’s financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business.  The Condensed Consolidated Financial Statements do not include adjustments to reflect the possible future effects on the recoverability and classification of recorded assets or the amounts of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

 

Note 2:

Summary of Significant Accounting Policies

Unaudited Interim Financial Information

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying Condensed Consolidated Balance Sheet as of September 30, 2019, Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018, Condensed Consolidated Statement of Changes in Redeemable Noncontrolling Interest and Stockholders’ Deficit for the three and nine months ended September 30, 2019 and 2018 and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018 are unaudited. These unaudited financial statements have been prepared in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for