TANGO THERAPEUTICS, INC. Management's Discussion and Analysis of Financial Condition and Results of Operations. (form 10-Q) – Marketscreener.com

Overview
Business Combination
sustain profitability on a continuing basis, then we may be unable to continue our operations at planned levels and be forced to reduce our operations.
Revenue
Collaboration Agreements with Gilead Sciences
As of March 31, 2022, $56.0 million has been recognized as collaboration revenue related to the upfront and research extension payments from the Gilead Agreement.
During the three months ended March 31, 2022 and 2021, we recognized $5.8 million and $6.4 million, respectively, of collaboration revenue associated with the Gilead Agreement based on performance completed during each period.
Operating Expenses
Research and Development Expenses


external research and development expenses incurred under agreements with contract research organizations, or CROs, as well as consultants that conduct our preclinical studies and development services;

costs related to manufacturing material for our preclinical and clinical studies;

laboratory supplies and research materials;

costs to fulfill our obligations under the collaboration with Gilead;

costs related to compliance with regulatory requirements; and

facilities, depreciation and other allocated expenses, which include direct and allocated expenses for rent, utilities and insurance.
The following table summarizes our research and development expenses:
2,207
1,468
4,927
Unallocated research and development expenses:
3,879
2,519
Total research and development expenses $ 24,330 $
15,000

the scope, rate of progress, and expenses of our ongoing research activities as well as any preclinical studies, clinical trials and other research and development activities;

establishing an appropriate safety profile with IND enabling studies;

successful enrollment in and completion of clinical trials;

whether our product candidates show safety and efficacy in our clinical trials;

receipt of marketing approvals from applicable regulatory authorities;

the progress of our collaboration with Gilead;

establishing commercial manufacturing capabilities or making arrangements with third-party manufacturers;

obtaining and maintaining patent and trade secret protection and regulatory exclusivity for our product candidates;

commercializing product candidates, if and when approved, whether alone or in collaboration with others; and

continued acceptable safety profile of products following any regulatory approval.
General and Administrative Expenses
Other Income (Expense), Net
Interest Income
Other expense, net consists of miscellaneous expense unrelated to our core operations.
Provision for Income Taxes
Results of Operations
Comparison of the three months ended March 31, 2022 and 2021
The following table summarizes our results of operations for the three months ended March 31, 2022 and 2021:
(13,102 ) Net loss and comprehensive loss $ (27,853 ) $ (12,091 ) $ (15,762 )
Collaboration revenue of $5.8 million and $6.4 million for the three months ended March 31, 2022 and 2021, respectively, was derived from the Gilead collaboration. The decrease of $0.6 million was due to lower research costs incurred under the collaboration during the three months ended March 31, 2022 resulting in lower collaboration revenue recognition.
Research and Development Expenses
General and Administrative Expenses
Interest Income
Interest income was $0.2 million for the three months ended March 31, 2022 compared to interest income of $0.1 million for the three months ended March 31, 2021. Interest income and expense was not significant for the three month periods primarily due to low interest rates in each period.
Other Expense, Net
Provision for Income Taxes
Provision for income taxes was $0 for the three months ended March 31, 2022 compared to $0.1 million for the three months ended March 31, 2021. The tax provision in the period ended March 31, 2021 is primarily attributable to taxable deferred revenue partially offset by the utilization of federal and state net operating losses and federal and state tax credits.
Liquidity and Capital Resources
Sources of Liquidity
Funding Requirements
Cash Flows
Comparison of the three months ended March 31, 2022 and 2021
Financing Activities
Contractual Obligations and Commitments
Purchase Obligations
License Agreement Obligations
Critical Accounting Policies and Significant Judgments and Estimates
Revenue Recognition
The terms of our collaboration agreements may include consideration such as non-refundable up-front payments, license fees, research extension fees, and clinical, regulatory and sales-based milestones and royalties on product sales.
to determine the standalone selling price may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success.
Accrued Research and Development Expenses
Stock-Based Compensation
Recently Adopted Accounting Pronouncements
Emerging Growth Company Status
private entities. As an emerging growth company, we may take advantage of certain exemptions and reduced reporting requirements under the JOBS Act. Subject to certain conditions, as an emerging growth company:

we may present only two years of audited financial statements and only two years of related Management’s Discussion and Analysis of Financial Condition and Results of Operations in our periodic reports and registration statements;


we may provide reduced disclosure about our executive compensation arrangements; and

we may not require nonbinding advisory votes on executive compensation or stockholder approval of any golden parachute payments.
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