FORM 10-Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

For the quarterly period ended June 30, 2004

 

OR

 

 

For the transition period from               to

 

Commission file number 000-30171

 

SANGAMO BIOSCIENCES, INC.

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

 

 

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 August 11, 2004, 25,168,947 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, 2004 and December 31, 2003
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2004 and 2003
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2004 and 2003
	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, Use of Proceeds and Issuer Purchases of Equity Securities
Item 4.	Submission of Matters to a Vote of Security Holders
Item 6.	Exhibits and Reports on Form 8-K
SIGNATURES
CERTIFICATIONS

 

Some statements contained in this report are forward-looking with respect to our operations, economic performance and financial condition. Statements that are forward-looking in nature should be read with caution because they involve risks and uncertainties, which are included, for example, in specific and general discussions about:

 

• our strategy;

 

• sufficiency of our cash resources;

 

• product development;

 

• revenues from existing and new collaborations;

 

• 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.

 

Various terms and expressions similar to them are intended to identify these cautionary statements. These terms include: “anticipates,” “believes,” “continues,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “seeks,” “should” and “will.” 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, 2004			December 31, 2003(1)
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	7,784		$	9,803
Marketable securities		30,623			34,052
Interest receivable		410			488
Accounts receivable, net		334			658
Prepaid expenses		644			284
Total current assets		39,795			45,285
Property and equipment, net		534			906
Other assets		32			41
Total assets		$	40,361		$	46,232
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities		$	522		$	815
Accrued compensation and employee benefits		468			636
Deferred revenue		53			120
Total current liabilities		1,043			1,571
Stockholders’ equity:
Common stock, $0.01 par value; 80,000,000 shares authorized, 25,158,947 and 24,954,243 shares issued and outstanding at June 30, 2004 and December 31, 2003, respectively		128,897			127,927
Deferred stock compensation		—			(1		)
Accumulated deficit		(89,501		)	(83,297		)
Accumulated other comprehensive income (loss)		(78		)	32
Total stockholders’ equity		39,318			44,661
Total liabilities and stockholders’ equity		$	40,361		$	46,232

 

(1)          Amounts derived from Audited Consolidated Statements dated December 31, 2003 filed as a part of Form 10-K.

 

See accompanying notes.

 

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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,
		2004			2003			2004			2003
Revenues:
Collaboration agreements		$	34		$	426		$	768		$	852
Federal government research grants		98			92			175			217
Total revenues		132			518			943			1,069
Operating expenses:
Research and development (excludes $161 and $13 of stock-based compensation expense for the three months ended June 30, 2004 and 2003, respectively, and $343 and $70 of stock-based compensation expense for the six months ended June 30, 2004 and 2003, respectively)		2,268			3,056			5,079			5,743
General and administrative (excludes $0 and $36 of stock-based compensation expense for the three months ended June 30, 2004 and 2003, respectively, and $0 and $87 of stock-based compensation expense for the six months ended June 30, 2004 and 2003, respectively)		1,100			1,116			2,097			1,943
Stock-based compensation expense		161			49			343			157
Total operating expenses		3,529			4,221			7,519			7,843
Loss from operations		(3,397		)	(3,703		)	(6,576		)	(6,774		)
Interest and other income, net		135			429			372			605
Net loss		$	(3,262	)	$	(3,274	)	$	(6,204	)	$	(6,169	)
Basic and diluted net loss per share		$	(0.13	)	$	(0.13	)	$