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Sangamo Therapeutics(SGMO) - 2024 Q4 - Annual Report
SGMOSangamo Therapeutics(SGMO)2025-03-17 20:05
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Financial Performance - The company recorded 56.5millioninrevenuefromcollaborationagreementsfortheyearendedDecember31,2024[519].−SangamoTherapeuticsreportedrevenuesof56.5 million in revenue from collaboration agreements for the year ended December 31, 2024[519]. - Sangamo Therapeutics reported revenues of 57.8 million for the year ended December 31, 2024, a decrease of 67.24% compared to 176.2millionin2023[527].−Thenetlossfor2024was176.2 million in 2023[527]. - The net loss for 2024 was 97.9 million, a 62.0% improvement compared to a net loss of 257.8millionin2023[527].−Thecompanyrecordedanincreaseinrevenueof257.8 million in 2023[527]. - The company recorded an increase in revenue of 13.9 million due to changes in estimates related to a collaboration agreement with Kite Pharma, resulting in a decrease in net loss by the same amount for the year ended December 31, 2023[548]. - The company recognized total revenue of 50,000in2024,including50,000 in 2024, including 48,679 from license revenue and 1,321fromresearchservices[614].OperatingLossesandFinancialStability−Thecompanyhasincurredsignificantoperatinglossessinceinceptionandanticipatescontinuedlossesfortheforeseeablefuture[19].−Thereissubstantialdoubtaboutthecompany′sabilitytocontinueasagoingconcernwithoutadditionalfunding[19].−Thecompanyhasnoapprovedproductsorproductrevenues,relyingonthesuccessofpreclinicalstudiesandclinicaltrials[19].−Thecompany’sabilitytocontinueoperationsisindoubtduetosignificantlosses,negativecashflows,andlimitedliquidityresources[543].−Thecompanymustsecurecollaborationpartnerstocontinuefundingoperationsandadvanceproductdevelopment[19].ImpairmentsandFinancialManagement−Thecompanyrecordedanimpairmentof1,321 from research services[614]. Operating Losses and Financial Stability - The company has incurred significant operating losses since inception and anticipates continued losses for the foreseeable future[19]. - There is substantial doubt about the company's ability to continue as a going concern without additional funding[19]. - The company has no approved products or product revenues, relying on the success of preclinical studies and clinical trials[19]. - The company’s ability to continue operations is in doubt due to significant losses, negative cash flows, and limited liquidity resources[543]. - The company must secure collaboration partners to continue funding operations and advance product development[19]. Impairments and Financial Management - The company recorded an impairment of 5.5 million in long-lived assets during 2024, including 2.9millionrelatedtoright−of−useassets[517].−Thecompanyhasfullyimpaireditsgoodwillandindefinite−livedintangibleassets,indicatingpotentialfinancialinstability[21].−Thecompanyrecordedimpairmentchargesof2.9 million related to right-of-use assets[517]. - The company has fully impaired its goodwill and indefinite-lived intangible assets, indicating potential financial instability[21]. - The company recorded impairment charges of 0.4 million related to certain marketable securities during the year ended December 31, 2023[606]. - The Company incurred a pre-tax goodwill impairment charge of 38.1millionduringtheyearendedDecember31,2023,resultinginthefullimpairmentofgoodwill[679].−TheCompanyrecordedpre−taxlong−livedassetimpairmentchargesof38.1 million during the year ended December 31, 2023, resulting in the full impairment of goodwill[679]. - The Company recorded pre-tax long-lived asset impairment charges of 28.9 million on right-of-use assets and 18.7milliononleaseholdimprovementsduringtheyearendedDecember31,2023[682].CashandLiquidity−Cashandcashequivalentsdecreasedto18.7 million on leasehold improvements during the year ended December 31, 2023[682]. Cash and Liquidity - Cash and cash equivalents decreased to 41.9 million at the end of 2024 from 45.2millionattheendof2023[525].−Thecompanyexpectstomeetitsliquidityrequirementsonlyintothemiddleofthesecondquarterof2025,whichislessthanoneyearfollowingtheissuanceoftheConsolidatedFinancialStatements[543].−CashandcashequivalentsasofDecember31,2024,were45.2 million at the end of 2023[525]. - The company expects to meet its liquidity requirements only into the middle of the second quarter of 2025, which is less than one year following the issuance of the Consolidated Financial Statements[543]. - Cash and cash equivalents as of December 31, 2024, were 41.918 million, down from 45.204millionin2023,representingadecreaseofapproximately5.745.204 million in 2023, representing a decrease of approximately 5.7%[568]. - Total cash, cash equivalents, and restricted cash reported within the Consolidated Statements of Cash Flows amounted to 43.418 million for 2024, compared to 46.704millionin2023,indicatingadeclineofabout7.846.704 million in 2023, indicating a decline of about 7.8%[568]. - The company holds restricted cash of 1.5 million, which is related to a lease deposit for its office and R&D facility in Brisbane, California[567]. Collaboration Agreements and Revenue Recognition - The Company received a 40.0millionupfrontlicensepaymentfromGenentechinAugust2024anda40.0 million upfront license payment from Genentech in August 2024 and a 10.0 million milestone payment in October 2024[608]. - The Company is eligible to earn up to 1.9billionindevelopmentandcommercialmilestonesfromtheagreementwithGenentech[608].−TheinitialtransactionpricewithGenentechis1.9 billion in development and commercial milestones from the agreement with Genentech[608]. - The initial transaction price with Genentech is 50.0 million, which includes the upfront license fee and the technology transfer milestone payment[610]. - The Company identified two performance obligations within the Genentech Agreement, with revenue from preclinical activities recognized over time[612]. - The Company received a 20.0millionupfrontlicensepaymentfromAstellasundertheAstellasAgreementandiseligibleforupto20.0 million upfront license payment from Astellas under the Astellas Agreement and is eligible for up to 1.3 billion in additional milestone payments[617]. Strategic Focus and Restructuring - Sangamo Therapeutics announced a strategic transformation to focus on neurology and genomic medicine, emphasizing epigenetic regulation therapies and novel AAV capsid delivery technology[539]. - The company expects to close its facility in Brisbane, California, in the near future as part of its restructuring efforts[675]. - The company terminated its leases in Valbonne, France, as part of its restructuring efforts in December 2024[689]. - Total other accrued liabilities decreased from 23,554,000in2023to23,554,000 in 2023 to 8,195,000 in 2024, representing a reduction of approximately 65.2%[688]. - Accrued restructuring charges significantly decreased from 11,733,000in2023to11,733,000 in 2023 to 896,000 in 2024, a decline of approximately 92.4%[688]. Employee and Operational Challenges - The company may experience difficulties in hiring and retaining qualified skilled employees, impacting its operational capabilities[21]. - The company faces significant risks related to regulatory approvals and compliance, which could impact its operations[16]. - The biotechnology sector is highly competitive, and the company may face challenges from rival technologies and products[19]. - Research and development expenses primarily consist of compensation-related expenses, laboratory supplies, and clinical studies, which are expensed as incurred[575]. - The company operates in a single segment, with all revenues generated in the United States for the years ended December 31, 2024, and 2023[593].