Statements of Operations. 38 Statement of Stockholders' Equity........................... 39 Statements of Cash Flows.................................... 40 Notes to Financial Statements............................... 41 REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS The Board of Directors and Stockholders Sangamo BioSciences, Inc. We have audited the accompanying balance sheets of Sangamo BioSciences, Inc. as of December 31, 2000 and 1999, and the related statements of operations, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2000. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sangamo BioSciences, Inc. at December 31, 2000 and 1999, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2000, in conformity with accounting principles generally accepted in the United States. Palo Alto, California January 26, 2001 SANGAMO BIOSCIENCES, INC. BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) ------------------- ASSETS 2000 -------- 1999 -------- Current assets: Cash and cash equivalents................................. $ 10,151 $ 251 Prepaid expenses.......................................... Total current assets.................................... 325 -------- 66,512 171 ------ 8,236 Property and equipment, net................................. 1,982 612 Other assets................................................ Total assets............................................ LIABILITIES AND STOCKHOLDERS' EQUITY 431 -------- $ 68,925 ======== 314 ------ $9,162 ====== Current liabilities: Accounts payable and accrued liabilities.................. $ 634 $ 348 Note payable................................................ -- 250 Stockholders' equity: Convertible preferred stock, $0.01 par value; 5,000,000 shares authorized, issuable in series, -0- and 4,855,917 shares issued and outstanding at December 31, 2000 and 1999, respectively...................................... -- 15,187 Common stock, $0.01 par value; 80,000,000 shares authorized, 22,147,391 and 6,132,060 shares issued and outstanding at December 31, 2000 and 1999, respectively............................................ 89,764 3,258 Accumulated other comprehensive income.................... 137 83 -------- ------ Total stockholders' equity.............................. 66,890 7,882 -------- ------ Total liabilities and stockholders' equity.............. $ 68,925 $9,162 ======== ====== See accompanying notes. 37 SANGAMO BIOSCIENCES, INC. STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 2000 1999 1998 Revenues: Operating expenses: Research and development (includes charges for stock 1998, respectively)..................................... 11,347 4,266 4,259 General and administrative (includes charges for stock 1998, respectively)..................................... 4,569 1,822 1,237 Total operating expenses.................................. 15,916 6,088 5,496 Loss from operations...................................... (12,483) (3,906) (3,458) Interest income............................................. 3,556 148 185 Interest expense............................................ (139) (17) (12) Net loss.................................................... (9,066) (3,775) (3,285) Deemed dividend upon issuance of convertible preferred stock..................................................... (1,500) (4,500) -- Net loss attributable to common stockholders................ $(10,566) $(8,275) $(3,285) ======== ======= ======= Basic and diluted net loss per common share................. $ (0.61) $ (1.38) $ (0.56) ======== ======= ======= Shares used in computing basic and diluted net loss per common share.............................................. 17,383 5,991 5,843 ======== ======= ======= See accompanying notes. SANGAMO BIOSCIENCES, INC. STATEMENT OF STOCKHOLDERS' EQUITY (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) CONVERTIBLE PREFERRED STOCK COMMON STOCK NOTE RECEIVABLE DEFERRED --------------------- --------------------- FROM STOCK ACCUMULATED SHARES AMOUNT SHARES AMOUNT STOCKHOLDER COMPENSATION DEFICIT ---------- -------- ---------- -------- ----------- ------------- ------------ Balances at December 31, 1997...... 3,108,000 $ 7,743 5,876,300 $ 794 -- $ (403) $ (1,725) Issuance of common stock upon exercise of options.............. -- -- 54,718 2 -- -- -- Issuance of preferred stock for services rendered................ 40,000 -- -- -- -- -- -- Issuance of note receivable to stockholder...................... -- -- -- -- (250) -- -- Forgiveness of note receivable to stockholder...................... -- -- -- -- 63 -- -- Deferred stock compensation........ -- -- -- 780 -- (780) -- Amortization of deferred stock compensation..................... -- -- -- -- -- 410 -- Comprehensive loss: Unrealized gain on investments..... -- -- -- -- -- -- -- Net loss........................... -- -- -- -- -- -- (3,285) Comprehensive loss................. ---------- -------- ---------- ------- ----- ------- -------- Balances at December 31, 1998...... 3,148,000 7,743 5,931,018 1,576 (187) (773) (5,010) Issuance of common stock upon exercise of options.............. -- -- 191,042 12 -- -- -- Issuance of common stock and options to purchase common stock for services rendered............ -- -- 10,000 188 -- -- -- Issuance of preferred stock upon exercise of warrants............. 41,250 -- -- -- -- -- -- Issuance of preferred stock, net of issuance costs of $56............ 1,666,667 7,444 -- -- -- -- -- Forgiveness of note receivable to stockholder...................... -- -- -- -- 62 -- -- Deferred stock compensation........ -- -- -- 1,482 -- (1,482) -- Amortization of deferred stock compensation..................... -- -- -- -- -- 519 -- Comprehensive loss: Unrealized gain on investments..... -- -- -- -- -- -- -- Net loss........................... -- -- -- -- -- -- (3,775) Comprehensive loss................. ---------- -------- ---------- ------- ----- ------- -------- Balances at December 31, 1999...... 4,855,917 15,187 6,132,060 3,258 (125) (1,736) (8,785) Issuance of common stock upon net of repurchases............... -- -- 1,156,192 706 -- -- -- Issuance of common stock for services rendered................ -- -- 72,062 1,081 -- -- -- Issuance of preferred stock upon exercise of warrants............. 28,158 61 -- -- -- -- -- Issuance of preferred stock........ 333,333 1,500 -- -- -- -- -- Conversion of preferred stock into common stock..................... (5,217,408) (16,748) 10,434,816 16,748 -- -- -- Conversion of notes payable and interest into common stock....... -- -- 842,454 12,637 -- -- -- Issuance of common stock in initial public offering, net of issuance costs of $5,104.................. -- -- 3,500,000 47,396 -- -- -- Issuance of common stock under employee stock purchase plan..... -- -- 9,807 125 -- -- -- Forgiveness of note receivable to stockholder...................... -- -- -- -- 62 -- -- Issuance of note receivable to stockholder...................... -- -- -- -- (400) -- -- Deferred stock compensation........ -- -- -- 6,778 -- (6,778) -- Amortization of deferred stock compensation and vesting of non-qualified stock options...... -- -- -- 1,035 -- 3,817 -- Comprehensive loss: Unrealized gain on investments..... -- -- -- -- -- -- -- Net loss........................... -- -- -- -- -- -- (9,066) Comprehensive loss................. ---------- -------- ---------- ------- ----- ------- -------- Balances at December 31, 2000...... -- $ -- 22,147,391 $89,764 $(463) $(4,697) $(17,851) ========== ======== ========== ======= ===== ======= ======== ACCUMULATED OTHER COMPREHENSIVE INCOME TOTAL STOCKHOLDERS' EQUITY -------------- ------------- Balances at December 31, 1997...... -- $ 6,409 Issuance of common stock upon exercise of options.............. -- 2 Issuance of preferred stock for services rendered................ -- -- Issuance of note receivable to stockholder...................... -- (250) Forgiveness of note receivable to Deferred stock compensation........ -- -- Amortization of deferred stock Comprehensive loss: Unrealized gain on investments..... 55 55 Net loss........................... -- (3,285) ------- Comprehensive loss................. (3,230) ---- ------- Balances at December 31, 1998...... 55 3,404 Issuance of common stock upon exercise of options.............. -- 12 Issuance of common stock and options to purchase common stock for services rendered............ -- 188 Issuance of preferred stock upon exercise of warrants............. -- -- Issuance of preferred stock, net of issuance costs of $56............ -- 7,444 Forgiveness of note receivable to stockholder...................... -- 62 Deferred stock compensation........ -- -- Amortization of deferred stock compensation..................... -- 519 Comprehensive loss: Unrealized gain on investments..... 28 28 Net loss........................... -- (3,775) ---- -------
Appears in 1 contract
Sources: Annual Report
Statements of Operations. 38 Statement 27 Statements of Stockholders' Equity........................... 39 .................................................... 28 Statements of Cash Flows.................................... 40 .............................................................. 29 Reconciliation of Net Income to Net Cash Provided by Operating Activities............. 30 Notes to Financial Statements............................... 41 ......................................................... 31 REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS The Board of ACCOUNTANTS To the Directors and Stockholders Sangamo BioSciencesof Advanced Magnetics, Inc. Inc.: We have audited the accompanying balance sheets of Sangamo BioSciencesAdvanced Magnetics, Inc. (the "Company") as of December 31September 30, 2000 1996 and 1999, 1995 and the related statements of operations, stockholders' equity, and cash flows for each of the three years in the period ended December 31September 30, 20001996. These financial statements are the responsibility of the companyCompany's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United Statesauditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sangamo BioSciencesAdvanced Magnetics, Inc. at December 31as of September 30, 2000 1996 and 19991995, and the results of its operations and its cash flows for each of the three years in the period ended December 31September 30, 20001996, in conformity with accounting principles generally accepted accounting principles. As discussed in Note A to the United Statesfinancial statements, effective October 1, 1994, Advanced Magnetics, Inc. adopted the Statement of Financial Accounting Standards No. Palo Alto115, California January 26"Accounting for Certain Investments in Debt and Equity Securities". COOPERS & ▇▇▇▇▇▇▇ L.L.P. Boston, 2001 SANGAMO BIOSCIENCESMassachusetts November 6, INC. BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) ------------------- ASSETS 2000 -------- 1999 -------- 1996 27 ------------------------- 1996 1995 ----------- ----------- Current assets: Cash and cash equivalents................................. $ 10,151 $ 251 Prepaid expenses.......................................... Total current assets.................................... 325 -------- 66,512 171 ------ 8,236 Property and equipment, net................................. 1,982 612 Other assets................................................ Total assets............................................ LIABILITIES AND STOCKHOLDERS' EQUITY 431 -------- $ 68,925 ======== 314 ------ $9,162 ====== Current liabilities: Accounts payable and accrued liabilities.................. $ 634 $ 348 Note payable................................................ -- 250 Stockholders' equity: Convertible preferred stock, $0.01 par value; 5,000,000 shares authorized, issuable in series, -0- and 4,855,917 shares issued and outstanding at December 31, 2000 and 1999, respectively...................................... -- 15,187 Common stock, $0.01 par value; 80,000,000 shares authorized, 22,147,391 and 6,132,060 shares issued and outstanding at December 31, 2000 and 1999, respectively............................................ 89,764 3,258 Accumulated other comprehensive income.................... 137 83 -------- ------ Total stockholders' equity.............................. 66,890 7,882 -------- ------ Total liabilities and stockholders' equity.............. $ 68,925 $9,162 ======== ====== See accompanying notes. 37 SANGAMO BIOSCIENCES, INC. STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 2000 1999 1998 Revenues: Operating expenses: Research and development (includes charges for stock 1998, respectively)..................................... 11,347 4,266 4,259 General and administrative (includes charges for stock 1998, respectively)..................................... 4,569 1,822 1,237 Total operating expenses.................................. 15,916 6,088 5,496 Loss from operations...................................... (12,483) (3,906) (3,458) Interest income............................................. 3,556 148 185 Interest expense............................................ (139) (17) (12) Net loss.................................................... (9,066) (3,775) (3,285) Deemed dividend upon issuance of convertible preferred stock..................................................... (1,500) (4,500) -- Net loss attributable to common stockholders................ $(10,566) $(8,275) $(3,285) ======== ======= ======= Basic and diluted net loss per common share................. $ (0.61) $ (1.38) $ (0.56) ======== ======= ======= Shares used in computing basic and diluted net loss per common share.............................................. 17,383 5,991 5,843 ======== ======= ======= See accompanying notes. SANGAMO BIOSCIENCES, INC. STATEMENT OF STOCKHOLDERS' EQUITY (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) CONVERTIBLE PREFERRED STOCK COMMON STOCK NOTE RECEIVABLE DEFERRED --------------------- --------------------- FROM STOCK ACCUMULATED SHARES AMOUNT SHARES AMOUNT STOCKHOLDER COMPENSATION DEFICIT ---------- -------- ---------- -------- ----------- ------------- ------------ Balances at December 31, 1997...... 3,108,000 $ 7,743 5,876,300 $ 794 -- $ (403) $ (1,725) Issuance of common stock upon exercise of options.............. -- -- 54,718 2 -- -- -- Issuance of preferred stock for services rendered................ 40,000 -- -- -- -- -- -- Issuance of note receivable to stockholder...................... -- -- -- -- (250) -- -- Forgiveness of note receivable to stockholder...................... -- -- -- -- 63 -- -- Deferred stock compensation........ -- -- -- 780 -- (780) -- Amortization of deferred stock compensation..................... -- -- -- -- -- 410 -- Comprehensive loss: Unrealized gain on investments..... -- -- -- -- -- -- -- Net loss........................... -- -- -- -- -- -- (3,285) Comprehensive loss................. ---------- -------- ---------- ------- ----- ------- -------- Balances at December 31, 1998...... 3,148,000 7,743 5,931,018 1,576 (187) (773) (5,010) Issuance of common stock upon exercise of options.............. -- -- 191,042 12 -- -- -- Issuance of common stock and options to purchase common stock for services rendered............ -- -- 10,000 188 -- -- -- Issuance of preferred stock upon exercise of warrants............. 41,250 -- -- -- -- -- -- Issuance of preferred stock, net of issuance costs of $56............ 1,666,667 7,444 -- -- -- -- -- Forgiveness of note receivable to stockholder...................... -- -- -- -- 62 -- -- Deferred stock compensation........ -- -- -- 1,482 -- (1,482) -- Amortization of deferred stock compensation..................... -- -- -- -- -- 519 -- Comprehensive loss: Unrealized gain on investments..... -- -- -- -- -- -- -- Net loss........................... -- -- -- -- -- -- (3,775) Comprehensive loss................. ---------- -------- ---------- ------- ----- ------- -------- Balances at December 31, 1999...... 4,855,917 15,187 6,132,060 3,258 (125) (1,736) (8,785) Issuance of common stock upon net of repurchases............... -- -- 1,156,192 706 -- -- -- Issuance of common stock for services rendered................ -- -- 72,062 1,081 -- -- -- Issuance of preferred stock upon exercise of warrants............. 28,158 61 -- -- -- -- -- Issuance of preferred stock........ 333,333 1,500 -- -- -- -- -- Conversion of preferred stock into common stock..................... (5,217,408) (16,748) 10,434,816 16,748 -- -- -- Conversion of notes payable and interest into common stock....... -- -- 842,454 12,637 -- -- -- Issuance of common stock in initial public offering, net of issuance costs of $5,104.................. -- -- 3,500,000 47,396 -- -- -- Issuance of common stock under employee stock purchase plan..... -- -- 9,807 125 -- -- -- Forgiveness of note receivable to stockholder...................... -- -- -- -- 62 -- -- Issuance of note receivable to stockholder...................... -- -- -- -- (400) -- -- Deferred stock compensation........ -- -- -- 6,778 -- (6,778) -- Amortization of deferred stock compensation and vesting of non-qualified stock options...... -- -- -- 1,035 -- 3,817 -- Comprehensive loss: Unrealized gain on investments..... -- -- -- -- -- -- -- Net loss........................... -- -- -- -- -- -- (9,066) Comprehensive loss................. ---------- -------- ---------- ------- ----- ------- -------- Balances at December 31, 2000...... -- $ -- 22,147,391 $89,764 $(463) $(4,697) $(17,851) ========== ======== ========== ======= ===== ======= ======== ACCUMULATED OTHER COMPREHENSIVE INCOME TOTAL STOCKHOLDERS' EQUITY -------------- ------------- Balances at December 31, 1997...... -- $ 6,409 Issuance of common stock upon exercise of options.............. -- 2 Issuance of preferred stock for services rendered................ -- -- Issuance of note receivable to stockholder...................... -- (250) Forgiveness of note receivable to Deferred stock compensation........ -- -- Amortization of deferred stock Comprehensive loss: Unrealized gain on investments..... 55 55 Net loss........................... -- (3,285) ------- Comprehensive loss................. (3,230) ---- ------- Balances at December 31, 1998...... 55 3,404 Issuance of common stock upon exercise of options.............. -- 12 Issuance of common stock and options to purchase common stock for services rendered............ -- 188 Issuance of preferred stock upon exercise of warrants............. -- -- Issuance of preferred stock, net of issuance costs of $56............ -- 7,444 Forgiveness of note receivable to stockholder...................... -- 62 Deferred stock compensation........ -- -- Amortization of deferred stock compensation..................... -- 519 Comprehensive loss: Unrealized gain on investments..... 28 28 Net loss........................... -- (3,775) ---- -------Assets:
Appears in 1 contract
Sources: Annual Report