Sana Biotechnology, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Sana Biotechnology, Inc. filed its Q1 2024 10-Q, detailing financial instruments, contingent liabilities, and R&D expenses.</b>

AI Summary

Sana Biotechnology, Inc. (SANA) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Sana Biotechnology, Inc. filed a 10-Q report for the quarter ended March 31, 2024. The filing includes data related to fair value measurements, including Level 2 and Level 3 inputs for corporate debt securities and short-term marketable securities. Contingent consideration liabilities, such as those related to Cobalt Biomedicine Inc. and Harvard Success Payment, are detailed with various measurement inputs. Research and development expenses for the period January 1, 2023, to March 31, 2023, are noted. Information on employee stock options and retained earnings as of March 31, 2024, and March 31, 2023, respectively, is provided.

Why It Matters

For investors and stakeholders tracking Sana Biotechnology, Inc., this filing contains several important signals. The filing provides specific details on the valuation of financial assets and liabilities, including contingent consideration, which can impact the company's reported financial position. Disclosure of R&D expenses and stock option information is crucial for investors to assess the company's investment in future growth and its equity structure.

Risk Assessment

Risk Level: medium — Sana Biotechnology, Inc. shows moderate risk based on this filing. The company operates in the biotechnology sector, which is inherently risky due to long development cycles, high failure rates in clinical trials, and significant regulatory hurdles. Specific details on contingent liabilities and R&D expenses in this filing highlight ongoing financial commitments and investments that carry inherent uncertainty.

Analyst Insight

Investors should closely examine the details of contingent consideration liabilities and R&D expenditures to understand the company's financial commitments and future growth prospects.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-08 — Filing Date (Filed As Of Date)
• 2023-01-01 to 2023-03-31 — R&D Expense Period (Research and Development Expense)
• 2024-01-01 to 2024-03-31 — Stock Option Period (Employee Stock Option)

Key Players & Entities

• Sana Biotechnology, Inc. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-08 (date) — Filed as of date
• Cobalt Biomedicine Inc (company) — Acquisition agreement context
• Harvard College (company) — Milestone context
• Nathan Hardy (person) — Rule 10b5-1 trading plan context

FAQ

Risk Factors

• Contingent Consideration Liabilities [medium — financial]: The company has contingent consideration liabilities related to acquisitions, such as Cobalt Biomedicine Inc. and Harvard Success Payment, which are subject to valuation adjustments based on probabilities of milestone achievement and other factors.
• Fair Value Measurements [medium — financial]: The company utilizes Level 2 and Level 3 inputs for fair value measurements of its corporate debt securities and short-term marketable securities, indicating a degree of subjectivity in valuation.
• Research and Development Expenses [high — operational]: Significant R&D expenses are incurred, reflecting the company's investment in developing new therapies, which carries inherent risks of failure and long timelines.

Key Dates

• 2024-03-31: Quarterly Period End — Financial results for the first quarter of 2024 are reported.
• 2024-05-08: Filing Date — The 10-Q report was officially filed with the SEC.

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value per share SANA The Nasdaq
• $8.1 billion — or exceeds $ 7.4 billion, but less than $8.1 billion 150 350 Equal to or exceeds $ 6.8
• $7.4 billion — or exceeds $ 6.8 billion, but less than $7.4 billion 100 400 Less than $ 6.8 billion

Filing Documents

• sana-20240331.htm (10-Q) — 2284KB
• sana-ex10_1.htm (EX-10.1) — 41KB
• sana-ex31_1.htm (EX-31.1) — 16KB
• sana-ex31_2.htm (EX-31.2) — 14KB
• sana-ex32_1.htm (EX-32.1) — 8KB
• sana-ex32_2.htm (EX-32.2) — 8KB
• img112676973_0.jpg (GRAPHIC) — 384KB
• 0000950170-24-055727.txt (&nbsp;) — 9896KB
• sana-20240331.xsd (EX-101.SCH) — 1294KB
• sana-20240331_htm.xml (XML) — 1548KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 5 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Operations 6 Condensed Consolidated Statements of Comprehensive Loss 7 Condensed Consolidated Statements of Stockholders' Equity 8 Condensed Consolidated Statements of Cash Flows 9 Notes to Unaudited Condensed Consolidated Financial Statements 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 32 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 33 Item 1A.

Risk Factors

Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 106 Item 3. Defaults Upon Senior Securities 106 Item 4. Mine Safety Disclosures 106 Item 5. Other Information 106 Item 6. Exhibits 108

Signatures

Signatures 109 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (Quarterly Report) contains forward-looking statements that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report could be deemed forward-looking statements, including those statements highlighted below. In some cases, you can identify these statements by forward-looking words such as "aim," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should," "would," or "will," the negative of these terms, and other comparable terminology. These forward-looking statements, which are subject to risks, include, but are not limited to, statements about: our expectations regarding the potential market size and size of the potential patient populations for our product candidates and any future product candidates, if approved for commercial use; our clinical and regulatory development plans; our expectations with regard to our preclinical studies, clinical trials, and research and development programs, including the impact, timing, and availability of data from such studies and trials; the timing of commencement of future preclinical studies, clinical trials, and research and development programs; our ability to acquire, discover, and develop product candidates and timely advance them into and through clinical data readouts and successful completion of clinical trials; our expectations regarding the potential safety, efficacy, or clinical utility of our product candidates; our intentions with respect to and our ability to establish collaborations or partnerships; the timing or likelihood of regulatory filings and approvals for our product candidates; our commercialization, marketing, and manufacturing expectations, including with respect to the buildout of our manufacturing facility and capabilities an

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

Financ ial Statements

Item 1. Financ ial Statements Sana Biotechnology, Inc. Condensed Consolida ted Balance Sheets (in thousands, except per share amounts) March 31, 2024 December 31, 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 177,054 $ 133,517 Marketable securities 134,028 71,678 Restricted cash 3,832 3,832 Prepaid expenses and other current assets 6,349 4,488 Total current assets 321,263 213,515 Property and equipment, net 81,649 70,689 Operating lease right-of-use assets 71,565 74,903 Intangible asset 59,195 59,195 Goodwill 140,627 140,627 Other non-current assets 7,078 6,370 TOTAL ASSETS $ 681,377 $ 565,299 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 6,095 $ 4,108 Accrued compensation 13,965 23,722 Accrued expenses and other current liabilities 19,674 23,462 Operating lease liabilities 13,167 13,195 Total current liabilities 52,901 64,487 Operating lease liabilities, net of current portion 92,922 90,901 Contingent consideration 114,990 109,606 Success payment liabilities 45,422 12,799 Total liabilities 306,235 277,793 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $ 0.0001 par value; 50,000 shares authorized; zero shares issued and outstanding as of March 31, 2024 and December 31, 2023 - - Common stock, $ 0.0001 par value; 750,000 shares authorized; 221,286 and 197,857 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 22 20 Additional paid-in capital 1,820,701 1,625,637 Accumulated other comprehensive loss ( 15 ) ( 60 ) Accumulated deficit ( 1,445,566 ) ( 1,338,091 ) Total stockholders' equity 375,142 287,506 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 681,377 $ 565,299 See accompanying notes. 5 Sana Biotechnology, Inc. Condensed Consolidated S