I would change out all the water, def. get rid of the bio balls. For a 12 gallon tank maybe just go with some premade water to start.
IT IS 100% possible to never show any noticeable signs of cycling (high ammonia, nitrites) if you start with live sand, rocks. The last 5 tanks I set up (3 were reefs) never showed ammonia or nitrite. If you start with live rock, and live sand, add some beneficial bacteria (or a scoop of sand from an established tank), wait a day for salinity and ph to stabilize then add a few hermits/ snails and maybe a hardy fish you should be fine as long as you dont over feed. The rock and sand is all covered with denitrifying bacteria and if you do regular water changes you shouldnt have any problems. If its just lr in the tank 6 hours a day should be more than enough light and as the tank matures and you add corals you can gradually increase to ten hours a day.