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)

 

Delaware				68-0359556
(State or other jurisdiction of incorporation or organization)				(IRS Employer Identification No.)
501 Canal Blvd, Suite A100
Richmond, California 94804
(Address of principal executive offices)
(510) 970-6000
(Registrant’s telephone number, including area code)

 

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 June 30, 2003, 24,815,069 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 June 30, 2003 and December 31, 2002		3
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2003 and 2002	4
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2003 and 2002	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	31
Item 4.	Controls and Procedures	32
PART II. OTHER INFORMATION
Item 2.	Changes in Securities and Use of Proceeds	32
Item 4.	Submission Of Matters To A Vote Of Security Holders	33
Item 6.	Exhibits and Reports on Form 8-K	33
SIGNATURES		34

 

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.

 

2

 

PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SANGAMO BIOSCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

 

 

		June 30, 2003			December 31, 2002 (1)
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	9,803		$	17,639
Marketable securities		37,538			34,504
Interest receivable		443			432
Accounts receivable, net		151			1,098
Prepaid expenses		762			423
Total current assets		48,697			54,096
Property and equipment, net		1,294			1,793
Other assets		54			338
Total assets		$	50,045		$	56,227
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities		$	955		$	937
Accrued compensation and employee benefits		458			669
Deferred revenue		322			375
Total current liabilities		1,735			1,981
Stockholders’ equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2003 and December 31, 2002		—			—
Common stock, $0.01 par value; 80,000,000 shares authorized, 24,815,069 and 24,740,713 shares issued and outstanding at June 30, 2003 and December 31, 2002, respectively		127,326			127,234
Deferred stock compensation		(49		)	(231		)
Accumulated deficit		(79,033		)	(72,864		)
Accumulated other comprehensive income		66			107
Total stockholders’ equity		48,310			54,246
Total liabilities and stockholders’ equity		$	50,045		$	56,227

 

(1)          Amounts derived from Audited Consolidated 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 June 30,						Six months ended June 30,
		2003			2002			2003			2002
Revenues:
Collaboration agreements		$	426		$	366		$	852		$	867
Federal government research grants		92			—			217			—
Total revenues		518			366			1,069			867
Operating expenses:
Research and development (excludes $13 and $48 of stock-based compensation expense for the three months ended June 30, 2003 and 2002, respectively, and $70 and $1,002 of stock-based compensation expense for the six months ended June 30, 2003 and 2002, respectively)		3,056			3,109			5,743			6,467
General and administrative (excludes $36 and $100 of stock-based compensation expense for the three months ended June 30, 2003 and 2002, respectively, and $87 and $188 of stock-based compensation expense for the six months ended June 30, 2003 and 2002, respectively)		1,116			1,086			1,943			1,948
Restructuring charge		—			—			—			190
Stock-based compensation expense		49			148			157			1,190
Total operating expenses		4,221			4,343			7,843			9,795
Loss from operations		(3,703		)	(3,977		)	(6,774		)	(8,928		)
Interest and other income, net		429			346			605			810
Net loss		$	(3,274	)	$	(3,631	)	$	(6,169	)	$	(8,118	)
Basic and diluted net loss per common share		$	(0.13	)	$	(0.15