Sana Biotechnology(SANA) - 2024 Q2 - Quarterly Report

Financial Performance - Net loss for the three months ended June 30, 2024, was $50.29 million, compared to a net loss of $113.99 million for the same period in 2023, indicating an improvement of about 55.9%[11] - For the six months ended June 30, 2024, the net loss was $157.8 million, compared to a net loss of $196.1 million for the same period in 2023[18] - The company reported a total comprehensive loss of $50.30 million for the three months ended June 30, 2024, compared to a total comprehensive loss of $112.73 million for the same period in 2023, indicating an improvement of about 55.5%[13] Assets and Equity - Total assets increased to $618.67 million as of June 30, 2024, up from $565.30 million as of December 31, 2023, representing a growth of approximately 9.2%[9] - Total current assets rose to $263.45 million, compared to $213.52 million at the end of 2023, marking an increase of about 23.4%[9] - Total stockholders' equity rose to $339.65 million as of June 30, 2024, up from $287.51 million at the end of 2023, reflecting an increase of approximately 18.2%[9] Cash and Cash Equivalents - Cash and cash equivalents increased to $134.96 million as of June 30, 2024, compared to $133.52 million at the end of 2023, showing a slight increase of about 1.1%[9] - As of June 30, 2024, the company reported cash, cash equivalents, and marketable securities totaling $251.6 million, with an accumulated deficit of $1.5 billion[22] - As of June 30, 2024, the Company had cash, cash equivalents, and restricted cash totaling $138.8 million, along with marketable securities of $116.7 million[127] Operating Expenses - Operating expenses for the three months ended June 30, 2024, were $49.37 million, significantly lower than $116.29 million for the same period in 2023, reflecting a decrease of approximately 57.5%[11] - Research and development expenses decreased to $60.87 million for the three months ended June 30, 2024, down from $73.04 million in the same period of 2023, a reduction of approximately 16.6%[11] - The company reported net cash used in operating activities of $124.2 million for the six months ended June 30, 2024, compared to $138.1 million for the same period in 2023[18] Stock and Financing - The company raised approximately $180.0 million in February 2024 through an underwritten public offering of 21.8 million shares of common stock[21] - The Company completed a public offering in February 2024, selling 21.8 million shares for net proceeds of approximately $180.0 million[57] - The Company has sold 4.9 million shares under its ATM facility for net proceeds of $28.6 million as of June 30, 2024[22] Liabilities and Obligations - Total financial liabilities were recorded at $132.468 million as of June 30, 2024, with contingent consideration and success payment liabilities included[39] - The Company has a contingent consideration obligation of up to $500.0 million to former Cobalt stockholders upon achieving specified development milestones[31] - The Cobalt Success Payment of up to $500.0 million is contingent on the Company's market capitalization reaching or exceeding $8.1 billion and advancing a program based on fusogen technology[31] Goodwill and Acquisitions - The Company recognized $140.6 million of goodwill from the acquisition of Cobalt Biomedicine, Inc., which enhances its research capabilities in engineered cell therapies[30] - The estimated fair value of the Cobalt Success Payment liability was $18.4 million, up from $11.2 million as of December 31, 2023[32] - The estimated fair value of the Cobalt Contingent Consideration was $111.6 million as of June 30, 2024, compared to $109.6 million as of December 31, 2023[33] Lease and Depreciation - The Company has a lease commitment for approximately $68.8 million over the initial term of a lease expiring in February 2039[52] - Total lease costs for the three months ended June 30, 2024, were $7,746 thousand, compared to $8,910 thousand for the same period in 2023[54] - Depreciation expense for the three months ended June 30, 2024, was $3.9 million, compared to $4.5 million for the same period in 2023[49] Stock-Based Compensation - The company incurred stock-based compensation expenses of $20.5 million for the six months ended June 30, 2024, compared to $18.6 million for the same period in 2023[18] - Stock-based compensation expense for the three months ended June 30, 2024, was $11.4 million, an increase from $9.8 million in the same period of 2023[60] - The Company had 30.3 million stock options outstanding as of June 30, 2024, with an intrinsic value of $22.7 million[62] Tax and Valuation - The Company recorded a full valuation allowance against its deferred tax assets due to uncertainty regarding their realization[66] - The estimated aggregate fair value of success payment liabilities was $20.9 million as of June 30, 2024, with a gain of 24.6 million recorded for the three months ended June 30, 2024[128] - The fair value of restricted stock units (RSUs) that vested during the six months ended June 30, 2024, was $4.6 million, compared to $1.1 million in the same period of 2023[65]