Sangamo Therapeutics(US:SGMO)2025-08-07 20:05PART I. FINANCIAL INFORMATION Item 1. Financial Statements The company presents unaudited financial statements reporting significant net losses and substantial doubt about its ability to continue as a going concern Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $38,344 | $41,918 | | Total current assets | $49,893 | $51,691 | | Total assets | $97,558 | $101,635 | | Liabilities & Equity | | | | Total current liabilities | $47,659 | $45,805 | | Total liabilities | $77,956 | $78,865 | | Total stockholders' equity | $19,602 | $22,770 | Condensed Consolidated Statements of Operations Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $18,306 | $356 | $24,743 | $837 | | Total operating expenses | $36,161 | $37,440 | $72,226 | $89,447 | | Loss from operations | ($17,855) | ($37,084) | ($47,483) | ($88,610) | | Net loss | ($19,986) | ($36,128) | ($50,583) | ($85,217) | | Basic and diluted net loss per share | ($0.08) | ($0.18) | ($0.21) | ($0.44) | Condensed Consolidated Statements of Cash Flows Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($44,307) | ($75,547) | | Net cash (used in) provided by investing activities | ($24) | $35,967 | | Net cash provided by financing activities | $36,748 | $21,589 | | Net decrease in cash, cash equivalents, and restricted cash | ($3,574) | ($18,918) | Notes to Condensed Consolidated Financial Statements Notes detail accounting policies, revenue recognition, restructuring, and substantial doubt about the company's ability to continue as a going concern - Management has substantial doubt about the company's ability to continue as a going concern due to significant losses and limited liquidity4041 - In April 2025, Sangamo entered a license agreement with Eli Lilly, receiving an $18.0 million upfront payment recognized as revenue in Q2 2025838488 - Pfizer terminated its collaboration agreement, resulting in a final $5.0 million in revenue recognized in the first half of 2025109115 - The company undertook significant restructuring, including workforce reductions, to reduce costs and focus on neurology140143 - A May 2025 underwritten offering generated aggregate net proceeds of $21.1 million132133 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's severe liquidity crisis, recent business highlights, and the urgent need for additional capital to continue operations Overview and Recent Business Highlights The company reports positive clinical data and recent financing but reiterates its 'going concern' risk with cash sufficient only into Q4 2025 - The company announced positive topline results from the Phase 1/2 STAAR study for its Fabry disease gene therapy and plans a BLA submission161 - The company is advancing its preclinical neurology programs, with the first patient in its chronic neuropathic pain study expected to be dosed in fall 2025158159 - The company continues to seek a collaboration partner for its hemophilia A program following the termination of its agreement with Pfizer162 Results of Operations Financial results show a significant revenue increase from a licensing deal, while restructuring efforts have reduced overall operating expenses Revenue Comparison (in thousands) | Period | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $18,306 | $356 | $17,950 | 5,042.1% | | Six Months Ended June 30 | $24,743 | $837 | $23,906 | 2,856.0% | - The revenue increase was primarily due to an $18.0 million upfront payment from the Lilly agreement and a $5.0 million payment from the terminated Pfizer collaboration175176 Operating Expense Comparison (in thousands) | Expense Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Research and development | $53,090 | $60,114 | ($7,024) | (12%) | | General and administrative | $19,136 | $23,812 | ($4,676) | (20%) | | Impairment of long-lived assets | $0 | $5,521 | ($5,521) | (100%) | | Total operating expenses | $72,226 | $89,447 | ($17,221) | (19%) | Liquidity and Capital Resources The company details its severe liquidity constraints, with cash reserves sufficient only into Q4 2025, raising substantial doubt about its going concern status - As of June 30, 2025, the company had cash and cash equivalents of $38.3 million, down from $41.9 million at year-end 2024193 - The company raised approximately $21.1 million from an underwritten offering and $17.6 million from its ATM program in the first half of 2025194150 - Management concludes there is substantial doubt about the company's ability to continue as a going concern, as existing cash funds operations only into Q4 2025197 Item 3. Quantitative and Qualitative Disclosures about Market Risk As a smaller reporting company, this disclosure is not required Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is not currently a party to any material pending legal proceedings Item 1A. Risk Factors Key risks include substantial doubt about going concern, potential Nasdaq delisting, and regulatory or trade policy disruptions - The company's financial position raises substantial doubt about its ability to continue as a going concern, risking cessation of operations or bankruptcy218219 - Sangamo received a Nasdaq deficiency notice for its stock price falling below the $1.00 minimum bid requirement and faces potential delisting225 - A new risk factor addresses potential disruptions at the FDA, which could adversely impact the Accelerated Approval pathway for its product candidates234235 - The company identifies risks related to international trade policies, which could increase expenses and disrupt its supply chain230231 Items 2-6. Other Required Information This section confirms no unregistered equity sales, defaults, or other material information, and lists the exhibits filed with the report