To supplement the financial results presented in accordance with generally accepted accounting principles in the United States (GAAP), Sana uses certain non-GAAP financial measures to evaluate its business. Sana's management believes that these non-GAAP financial measures are helpful in understanding Sana's financial performance and potential future results, as well as providing comparability to peer companies and period over period. In particular, Sana's management utilizes non-GAAP operating cash burn, non-GAAP research and development expense and non-GAAP net loss and net loss per share. Sana believes the presentation of these non-GAAP measures provides management and investors greater visibility into the company's actual ongoing costs to operate its business, including actual research and development costs unaffected by non-cash valuation changes and certain one-time expenses for acquiring technology, as well as facilitating a more meaningful comparison of period-to-period activity. Sana excludes these items because they are highly variable from period to period and, in respect of the non-cash expenses, provides investors with insight into the actual cash investment in the development of its therapeutic programs and platform technologies.
These are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with Sana's financial statements prepared in accordance with GAAP. These non-GAAP measures differ from GAAP measures with the same captions, may be different from non-GAAP financial measures with the same or similar captions that are used by other companies, and do not reflect a comprehensive system of accounting. Sana's management uses these supplemental non-GAAP financial measures internally to understand, manage, and evaluate Sana's business and make operating decisions. In addition, Sana's management believes that the presentation of these non-GAAP financial measures is useful to investors because they enhance the ability of investors to compare Sana's results from period to period and allows for greater transparency with respect to key financial metrics Sana uses in making operating decisions. The following are reconciliations of GAAP to non-GAAP financial measures:
Sana Biotechnology, Inc.
Unaudited Reconciliation of Change in Cash, Cash Equivalents,
and Marketable Securities to
Non-GAAP Operating Cash Burn
Nine Months Ended September 30,
-----------------------------------
2024 2023
------------------ --------------
(in thousands)
Beginning cash, cash
equivalents, and marketable
securities $ 205,195 $ 434,014
Ending cash, cash equivalents,
and marketable securities 199,007 268,570
-------------- -------------
Change in cash, cash
equivalents, and marketable
securities (6,188) (165,444)
Cash paid to purchase
property and equipment 32,994 5,986
-------------- -------------
Change in cash, cash
equivalents, and marketable
securities, excluding capital
expenditures 26,806 (159,458)
Adjustments:
Net proceeds from issuance of
common stock (181,000) (27,009)
Cash paid for
personnel-related costs
related to portfolio
prioritizations 1,110 1,881
Cash paid in connection with
the termination of the
Fremont lease - 4,423
Cash received in connection
with the Coronavirus Aid,
Relief, and Economic
Security Act - (7,063)
Operating cash burn -- Non-GAAP $ (153,084) $ (187,226)
============== =============
Sana Biotechnology, Inc.
Unaudited Reconciliation of GAAP to Non-GAAP General
and Administrative Expense
Three Months
Ended September Nine Months Ended
30, September 30,
----------------- --------------------
2024 2023 2024 2023
------- -------- ---------- --------
(in thousands)
General and
administrative
-- GAAP $14,052 $ 19,183 $ 46,763 $ 52,515
Adjustments:
Loss on
termination
of Fremont
lease(1) - (2,668) - (2,668)
General and
administrative
-- Non-GAAP $14,052 $ 16,515 $ 46,763 $ 49,847
====== ======= ====== =======
(1) For the three and nine months ended September 30,
2023, the loss of $2.7 million included $4.4 million
in fees incurred, offset by a gain of $1.7 million
recorded in connection with the derecognition of the
right-of use asset and lease liability associated
with the Fremont Facility.
Sana Biotechnology, Inc.
Unaudited Reconciliation of GAAP to Non-GAAP Net Loss
and Net Loss Per Share
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ---------------------
2024 2023 2024 2023
-------- -------- --------- ---------
(in thousands, except per share data)
Net income (loss) --
GAAP $(59,924) $ 984 $(217,690) $(195,138)
Adjustments:
Change in the
estimated fair
value of the
success payment
liabilities(1) (5,732) (24,037) 2,316 (8,593)
Change in the
estimated fair
value of
contingent
consideration(2) 235 (58,578) 2,250 (47,223)
Loss on
termination of
Fremont
lease(3) - 2,668 - 2,668
Impairment of
other assets 763 - 4,832 -
Net loss -- Non-GAAP $(64,658) $(78,963) $(208,292) $(248,286)
======= ======= ======== ========
Net income (loss)
per share -- GAAP $ (0.25) $ - $ (0.95) $ (1.01)
Adjustments:
Change in the
estimated fair
value of the
success payment
liabilities(1) (0.02) (0.12) 0.01 (0.04)
Change in the
estimated fair
value of
contingent
consideration(2) - (0.30) 0.01 (0.24)
Loss on
termination of
Fremont
lease(3) - 0.01 - 0.01
Impairment of
other assets - - 0.02 -
Net loss per share
-- Non-GAAP $ (0.27) $ (0.41) $ (0.91) $ (1.28)
======= ======= ======== ========
Weighted-average
shares outstanding
-- basic 235,412 196,978 229,076 193,605
======= ======= ======== ========
(1) For the three months ended September 30, 2024, the
gain related to the Cobalt success payment liability
was $4.9 million compared to $22.0 million for the
same period in 2023. For the nine months ended September
30, 2024, the expense related to the Cobalt success
payment liability was $2.3 million compared to a gain
of $8.3 million for the same period in 2023. For the
three months ended September 30, 2024, the gain related
to the Harvard success payment liabilities was $0.8
million compared to $2.0 million for the same period
in 2023. For the nine months ended September 30, 2024,
the gain related to the Harvard success payment liabilities
was immaterial compared to a gain of $0.3 million
for the same period in 2023.
(2) The contingent consideration is in connection with
the acquisition of Cobalt.
(3) For the three and nine months ended September 30,
2023, the loss of $2.7 million included $4.4 million
in fees incurred, offset by a gain of $1.7 million
recorded in connection with the derecognition of the
right-of use asset and lease liability associated
with the Fremont Facility.
(END) Dow Jones Newswires
November 08, 2024 09:00 ET (14:00 GMT)
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