FORM 10-Q

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SANGAMO BIOSCIENCES, INC.

(exact name of small business issuer as specified in its charter)

 

 

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 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 ý  No  o

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o  No  ý

 

As of March 31, 2003, 24,751,213 shares of the issuer’s common stock, par value $0.01 per share, were outstanding.

 

 

INDEX

 

SANGAMO BIOSCIENCES, INC.

 

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets at March 31, 2003 and December 31, 2002
	Condensed Consolidated Statements of Operations for the Three months ended March 31, 2003 and 2002
	Condensed Consolidated Statements of Cash Flows for the Three months ended March 31, 2003 and 2002
	Notes to Condensed Consolidated Financial Statements
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 2.	Changes in Securities and Use of Proceeds
Item 4.	Submission Of Matters To A Vote Of Security Holders
Item 6.	Exhibits and Reports on Form 8-K
SIGNATURES
CERTIFICATIONS

 

This Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbors created by those sections.   Statements that are forward-looking in nature should be read with caution because they involve risks and uncertainties, they are included, for example, in specific and general discussions about: our strategy; sufficiency of our cash resources; revenues from existing and new collaborations; product development; our research and development and other expenses; our operational and legal risks; and our plans, objectives, expectations and intentions, and any other statements that are not historical facts.  Words such as “expects”, “anticipates”, “targets”, “goals”, “projects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, and variations of such words and similar expressions are intended to identify such forward-looking statements.  Actual results may differ materially from those expressed or implied in those statements.  Factors that could cause these differences include, but are not limited to, those discussed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”  Sangamo undertakes no obligation to publicly release any revisions to forward-looking statements to reflect events or circumstances arising after the date of this report.  Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Quarterly Report.

 

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PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

 

SANGAMO BIOSCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

 

		March 31, 2003			December 31, 2002(1)
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	12,587		$	17,639
Marketable securities		36,474			34,504
Interest receivable		460			432
Accounts receivable, net		904			1,098
Prepaid expenses		382			423
Total current assets		50,807			54,096
Property and equipment, net		1,591			1,793
Other assets		322			338
Total assets		$	52,720		$	56,227
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities		$	494		$	937
Accrued compensation and employee benefits		436			669
Deferred revenue		349			375
Total current liabilities		1,279			1,981
Stockholders’ equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding at March 31, 2003 and December 31, 2002		—			—
Common stock, $0.01 par value; 80,000,000 shares authorized, 24,751,213 and 24,740,713 shares issued and outstanding at March 31, 2003 and December 31, 2002, respectively		127,245			127,234
Deferred stock compensation		(132		)	(231		)
Accumulated deficit		(75,759		)	(72,864		)
Accumulated other comprehensive income		87			107
Total stockholders’ equity		51,441			54,246
Total liabilities and stockholders’ equity		$	52,720		$	56,227

 

(1)          Amounts derived from Audited Statements dated December 31, 2002 filed as a part of Form 10-K.

 

See accompanying notes.

 

3

 

SANGAMO BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)
(Unaudited)

 

		Three months ended March 31,
		2003			2002
Revenues:
Collaboration agreements		$	426		$	501
Research grants		125			—
Total revenues		551			501
Operating expenses:
Research and development (excludes $57 and $954 of stock based compensation expense for the three months ended March 31, 2003 and 2002, respectively)		2,687			3,358
General and administrative (excludes $51 and $88 of stock based compensation expense for the three months ended March 31, 2003 and 2002, respectively)		827			862
Restructuring charge		—			190
Stock based compensation expense		108			1,042
Total operating expenses		3,622			5,452
Loss from operations		(3,071		)	(4,951		)
Interest and other income, net		176			464
Net loss		$	(2,895	)	$	(4,487	)
Basic and diluted net loss per common share		$	(0.12	)	$	(0.18	)
Shares used in basic and diluted net loss per common share		24,734			24,356

 

See accompanying notes.

 

4

 

SANGAMO BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)
(Unaudited)

 

		Three months ended March 31,
		2003			2002
Operating Activities:
Net loss		$	(2,895	)	$	(4,487	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		228			328
Non-cash stock compensation charges		108			1,042
Changes in operating assets and liabilities:
Interest receivable		(28		)	690
Accounts receivable		194			389
Prepaid expenses and other assets		57			76
Accounts payable and accrued liabilities		(443		)	(322		)
Accrued compensation and employee benefits		(233		)	(135		)
Deferred revenue		(26		)	(145		)
Net cash used in operating activities		(3,038		)	(2,564		)
Investing Activities:
Purchases of investments		(8,490		)	(2,864		)