10-Q
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ROC

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File Number: 001-39485

 

TANGO THERAPEUTICS, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

85-1195036

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

201 Brookline Ave., Suite 901

Boston, MA

02215

(Address of principal executive offices)

(Zip Code)

(857) 320-4900

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common stock, par value $0.001 per share

 

TNGX

 

Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

As of November 1, 2023, the registrant had 101,989,696 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

 


 

Table of Contents

 

 

 

Page

 

 

 

PART I.

FINANCIAL INFORMATION

 

 

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations and Comprehensive Loss

2

 

Condensed Consolidated Statements of Stockholders' Equity

3

 

Condensed Consolidated Statements of Cash Flows

5

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

Item 2.

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

15

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

27

Item 4.

Controls and Procedures

27

 

 

 

PART II.

OTHER INFORMATION

28

 

 

 

Item 1.

Legal Proceedings

28

Item 1A.

Risk Factors

29

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

30

Item 3.

Defaults Upon Senior Securities

30

Item 4.

Mine Safety Disclosures

30

Item 5.

Other Information

30

Item 6.

Exhibits

30

Signatures

32

 

 

i


 

 

Summary of Material Risks Associated with Our Business

Our business is subject to numerous material and other risks that you should be aware of before making an investment decision with respect to our securities. These risks are described more fully in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022. These risks include, among others, the following (which is not an exhaustive list of all such risks):

 

 

We are a precision oncology company with a limited operating history. We have no products approved for commercial sale, have not generated any revenue from product sales and may never become profitable. Further, we face substantial competition, which may result in others discovering, developing or commercializing products before or more successfully than we do.

 

 

 

We have incurred significant net losses since our inception and anticipate that we will continue to incur losses for the foreseeable future. We expect our operating results to fluctuate significantly in the future as our business advances.

 

 

 

We will need to raise substantial additional funding. If we are unable to raise capital when needed or on terms acceptable to us, we would be forced to delay, reduce or eliminate some of our product development programs or commercialization efforts. Raising additional capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product candidates.

 

 

 

We have never successfully completed any clinical trials and we may be unable to do so for any product candidates we develop. Certain of our programs are still in preclinical development and may never advance to clinical development.

 

 

 

Our programs are focused on the development of oncology therapeutics for patients with genetically defined or biomarker-driven cancers, which is a rapidly evolving area of science, and the approach we are taking to discover and develop drugs is novel and may never lead to approved or marketable products.

 

 

 

If we are unable to successfully validate, develop and obtain regulatory approval for screening tests and companion diagnostic tests for our product candidates that require or would commercially benefit from such tests, or experience significant delays in doing so, we may not realize the full commercial potential of these product candidates. We will also rely on third-parties for screening for biomarkers that enable patient selection for trials.

 

 

 

Clinical product development involves a lengthy and expensive process, with an uncertain outcome. Further, our current and potential future collaborations may not realize the anticipated benefits.

 

 

 

Interim, top-line, and initial data from our clinical trials that we announce or publish from time to time may change as more patient data become available and are subject to confirmation, audit and verification procedures that could result in material changes in the final data.

 

 

 

Results from earlier preclinical studies of our programs and product candidates are not necessarily predictive of the results of later preclinical studies and clinical trials of our programs and product candidates. If we cannot replicate the results from our earlier preclinical studies of our programs and product candidates in our later preclinical studies and clinical trials, we may be unable to successfully develop, obtain regulatory approval for and commercialize our product candidates.

 

 

 

If we experience delays or difficulties in the initiation, enrollment or dosing of patients in clinical trials, the announcement of clinical trial results and our receipt of necessary regulatory approvals (if any) could be delayed or prevented.

 

 

 

Our clinical trials or those of our current or future collaborators may reveal significant adverse events not seen in our preclinical or nonclinical studies and may result in a safety profile that could inhibit regulatory approval or market acceptance of any of our product candidates.

 

 

 

Some of our product candidates modulate pathways for which there are currently no approved or effective therapies, and utilize novel binding locations, which may result in greater research and development expenses, regulatory issues that could delay or prevent approval, or discovery of unknown or unanticipated adverse effects.

 

 

 

If we are not able to obtain, or if there are delays in obtaining, required regulatory approvals for our product candidates, we will not be able to commercialize, or will be delayed in commercializing, our product candidates, and our ability to generate revenue will be materially impaired.

 

ii


 

 

 

 

The COVID-19 pandemic, or a similar pandemic, epidemic, or outbreak of an infectious disease, may materially and adversely affect our business and our financial results and could cause a disruption to the development of our product candidates and the initiation and completion of clinical trials.

 

 

 

We expect to rely on third parties to conduct our clinical trials, as well as investigator-sponsored clinical trials of our product candidates (if any). If these third parties do not successfully carry out their contractual duties, comply with regulatory requirements or meet expected deadlines, we may not be able to obtain regulatory approval for or commercialize our product candidates and our business could be substantially harmed.

 

 

 

We contract with third parties for the manufacture of our product candidates for preclinical development and clinical trials and expect to continue to do so for future clinical testing and commercialization (if approved). This reliance on third parties increases the risk that we will not have sufficient quantities of our product candidates or products or such quantities at an acceptable cost, which could delay, prevent or impair our development or commercialization efforts.

 

 

 

The third parties upon whom we rely for the supply of the active pharmaceutical ingredients and drug product to be used in our product candidates are our sole source of supply, and the loss of any of these suppliers could significantly harm our business.

 

 

 

If we cannot obtain new patents, maintain our existing patents and protect the confidentiality and proprietary nature of our trade secrets and other intellectual property, our business and competitive position may be harmed.

 

 

 

If we are found to be infringing third party patents, we may be forced to pay damages to the patent owner and/or obtain a license to continue the manufacture, sale or development of our products. If we cannot obtain a license, we may be prevented from the manufacture, sale or development of our products or product candidates, which may adversely affect our business.

Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains express or implied forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Words such as "anticipates," "continue," "could," "may," "forecasts," "expects," "intends," "plans," "potentially," "believes," "seeks," "estimates," "predict," "target," and variations of such words and similar expressions are intended to identify such forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed or forecasted in any such statements. Such forward-looking statements are based on current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by our management, and may include, but are not limited to, statements regarding:

 

 

the initiation, timing, progress, results, and cost of our research and development programs and our current and future preclinical studies and clinical trials, including statements regarding the timing of IND filings and acceptance, active enrollment in clinical trials, dosing in clinical trials, and initiation and completion of studies or clinical trials and related preparatory work, and the period during which the results of the clinical trials (including initial and final trial results) will become available;

 

 

our ability to discover and develop product candidates efficiently (including the advancement of development candidates on the timelines identified and the ability to identify clinical trial investigators to use our product candidates in trials);

 

 

our ability and the potential to manufacture our drug substances and product candidates successfully for preclinical use, for clinical trials and on a larger scale for commercial use, if approved;

 

 

the ability and willingness of our third-party strategic collaborators to license and to continue research and development activities relating to our development candidates and product candidates;

 

 

our ability to obtain funding for our operations necessary to complete further research, development and commercialization of our product candidates (and that existing cash, cash equivalents and marketable securities will enable us to fund our operating expenses and capital expenditure requirements at least into 2026);

 

 

our ability to obtain and, if approved, maintain regulatory approval of our product candidates;

 

iii


 

 

 

our ability to commercialize our products, if approved;

 

 

the pricing and reimbursement of our product candidates, if approved;

 

 

the implementation of our business model, and strategic plans for our business and product candidates;

 

 

the scope of protection we are able to establish and maintain for intellectual property rights covering our product candidates;

 

 

estimates of our future expenses, capital requirements, and our need for additional financing;

 

 

the potential benefits of strategic collaboration agreements, our ability to enter into strategic collaborations or arrangements, and our ability to attract collaborators with development, regulatory and commercialization expertise;

 

 

future agreements with third parties in connection with the commercialization of product candidates (if approved) and any other approved products;

 

 

the size and growth potential of the markets for our product candidates, and our ability to serve those markets;

 

 

our financial performance, including the expectation that we will continue to incur operating losses and negative cash flow;

 

 

the rate and degree of market acceptance of our product candidates, if approved;

 

 

regulatory developments in the United States and foreign countries, including pricing regulations by U.S. (such as CMS) and foreign regulatory authorities;

 

 

our ability to contract with third-party suppliers and manufacturers and their ability to perform adequately;

 

 

 

our ability to produce our products or product candidates with advantages in turnaround times or manufacturing cost;

 

 

 our ability to deliver the deep, sustained target inhibition necessary to optimize tumor response and clinical benefit as a result of the unique ability of synthetic lethal targeting to spare normal cells, as well as the success of competing therapies that are or may become available;

 

 

our ability to attract and retain key scientific or management personnel;

 

 

the impact of laws and regulations;

 

 

developments relating to our competitors and industry;

 

 

the effect of the on-going COVID-19 pandemic, including mitigation efforts and economic effects, on any of the foregoing or other aspects of our business operations, including but not limited to our preclinical studies and clinical trials and any future studies or trials; and

 

 

 

other risks and uncertainties, including those identified in Part II, Item 1A of this Quarterly Report on Form 10-Q and in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022 - in both cases, see section titled “Risk Factors.”

The forward-looking statements contained in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022 and Part II, Item 1A of this Quarterly Report on Form 10-Q are based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects

iv


 

from those projected in these forward-looking statements. Some of these risks and uncertainties may in the future be amplified by the COVID-19 pandemic and there may be additional risks that we currently consider immaterial or which are unknown. It is not possible to predict or identify all such risks. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

USE OF DEFINED TERMS IN THIS QUARTERLY REPORT ON FORM 10-Q

Unless the context otherwise requires in this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2023, we use the following defined terms:

i.
"the Company", "we", "our" and "us" mean Tango Therapeutics, Inc. and its wholly-owned subsidiaries;
ii.
"Business Combination" means the merger of BCTG Merger Sub Inc. with and into Tango Therapeutics, Inc. (now known as Tango Therapeutics Sub, Inc.) on August 10, 2021, with Tango Therapeutics, Inc. as the surviving company in the merger as a wholly-owned subsidiary of BCTG Acquisition Corp. (now known a Tango Therapeutics, Inc.);
iii.
"CoREST” means Co-repressor of Repressor Element-1 Silencing Transcription;
iv.
“Gilead” means Gilead Sciences, Inc.;
v.
“GBM” means glioblastoma;
vi.
“HRD+” means homologous recombination deficient;
vii.
“MTA” means methylthioadenosine;
viii.
“MTAP” means methylthioadenosine phosphorylase;
ix.
“NSCLC” means non-small cell lung cancer;
x.
“PRMT5” means protein arginine methyltransferase 5;
xi.
"Quarterly Report" means this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2023;
xii.
“SDMA” means symmetric di-methylation of specific arginine;
xiii.
“STK11” means serine-threonine kinase 11; and
xiv.
“USP1” means ubiquitin-specific protease 1.

 

Corporate Information

We were formerly known as BCTG Acquisition Corp. (“BCTG”) and were incorporated in Delaware in May 2020 as a special purpose acquisition company, formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination. On August 10, 2021, we consummated the merger pursuant to the Agreement and Plan of Merger, dated as of April 13, 2021, by and among BCTG, BCTG Merger Sub Inc. and Tango Therapeutics Sub, Inc. Upon the consummation of the merger, we changed our name to Tango Therapeutics, Inc.

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, including exhibits, proxy and information statements and amendments to those reports filed or furnished pursuant to Sections 13(a), 14, and 15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, are available through the “Investors” portion of our website free of charge as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (“SEC”). We also make available, free of charge on our website, the reports filed with the SEC by our executive officers, directors and 10% stockholders pursuant to Section 16 under the Exchange Act as soon as reasonably practicable after copies of those filings are provided to us by those persons. Accordingly, investors should monitor such portions of the company’s website, in addition to following the company’s press releases, SEC filings and public conference calls and webcasts (if any). Information on our website is not to be deemed to be incorporated by reference in, and is not part of, this Quarterly Report on Form 10-Q or any of our other securities filings, unless specifically incorporated herein by reference, and should not be relied upon in making a decision as to whether or not to purchase our common stock. Our filings with the SEC may be accessed through the SEC’s Interactive Data Electronic Applications system at http://www.sec.gov. All statements made in any of our securities filings, including all forward-looking statements or information, are made as of the date of the document in which the statement is included, and we do not assume or undertake any obligation to update any of those statements or documents unless we are required to do so by law.

v


 

Further, the company intends to use its website http://www.tangotx.com as a means of disclosing material non-public information and for complying with its disclosure obligations under the SEC Regulation FD. Such disclosures will be included on the company’s website under the heading “Investors.” Accordingly, investors should monitor such portions of the company’s website, in addition to following the company’s press releases, SEC filings and public conference calls and webcasts (if any). The information contained on, or that may be accessed through, the website is not part of, and is not incorporated into, this Quarterly Report on Form 10-Q.

Our principal executive office is located at 201 Brookline Avenue, Suite 901, Boston, Massachusetts.

vi


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

TANGO THERAPEUTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

 

September 30,
2023

 

 

December 31,
2022

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

58,533

 

 

$

59,968

 

Marketable securities

 

 

301,347

 

 

 

306,165

 

Accounts receivable

 

 

 

 

 

2,000

 

Restricted cash

 

 

856

 

 

 

567

 

Prepaid expenses and other current assets

 

 

10,155

 

 

 

6,572

 

Total current assets

 

 

370,891

 

 

 

375,272

 

Property and equipment, net

 

 

10,261

 

 

 

10,884

 

Operating lease right-of-use assets

 

 

44,422

 

 

 

46,886

 

Restricted cash, net of current portion

 

 

2,567

 

 

 

3,423

 

Other assets

 

 

48

 

 

 

5

 

Total assets

 

$

428,189

 

 

$

436,470

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,837

 

 

$

4,453

 

Accrued expenses and other current liabilities

 

 

11,467

 

 

 

17,495

 

Operating lease liabilities

 

 

2,040

 

 

 

1,770

 

Deferred revenue

 

 

27,072

 

 

 

31,792

 

Income tax payable

 

 

 

 

 

35

 

Total current liabilities

 

 

43,416

 

 

 

55,545

 

Operating lease liabilities, net of current portion

 

 

37,466

 

 

 

39,361

 

Deferred revenue, net of current portion

 

 

70,712

 

 

 

92,088

 

Total liabilities

 

 

151,594

 

 

 

186,994

 

Commitments and contingencies (Note 7)

 

 

 

 

 

 

Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued
   and outstanding as of September 30, 2023 and December 31, 2022, respectively

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, $0.001 par value; 200,000,000 shares
   authorized at September 30, 2023 and December 31, 2022;
   
101,847,154 and 88,179,374 shares issued and outstanding as of
   September 30, 2023 and December 31, 2022, respectively

 

 

102

 

 

 

88

 

Additional paid-in capital

 

 

617,667

 

 

 

522,605

 

Accumulated other comprehensive loss

 

 

(681

)

 

 

(3,705

)

Accumulated deficit

 

 

(340,493

)

 

 

(269,512

)

Total stockholders’ equity

 

 

276,595

 

 

 

249,476

 

Total liabilities and stockholders’ equity

 

$

428,189

 

 

$

436,470

 

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

1


 

TANGO THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Collaboration revenue

 

$

10,732

 

 

$

6,920

 

 

$

26,096

 

 

$

18,449

 

License revenue

 

 

 

 

 

 

 

 

5,000

 

 

 

 

Total revenue

 

 

10,732

 

 

 

6,920

 

 

 

31,096

 

 

 

18,449

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

27,149

 

 

 

28,744

 

 

 

83,859

 

 

 

76,815

 

General and administrative

 

 

9,209

 

 

 

8,099

 

 

 

26,397

 

 

 

22,138

 

Total operating expenses

 

 

36,358

 

 

 

36,843

 

 

 

110,256

 

 

 

98,953

 

Loss from operations

 

 

(25,626

)

 

 

(29,923

)

 

 

(79,160

)

 

 

(80,504

)

Other income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1,872

 

 

 

350

 

 

 

4,383

 

 

 

865

 

Other income, net

 

 

1,514

 

 

 

523

 

 

 

3,883

 

 

 

526

 

Total other income, net

 

 

3,386

 

 

 

873

 

 

 

8,266

 

 

 

1,391

 

Loss before income taxes

 

 

(22,240

)

 

 

(29,050

)

 

 

(70,894

)

 

 

(79,113

)

Provision for income taxes

 

 

(23

)

 

 

 

 

 

(87

)

 

 

(3

)

Net loss

 

$

(22,263

)

 

$

(29,050

)

 

$

(70,981

)

 

$

(79,116

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share – basic and diluted

 

$

(0.23

)

 

$

(0.33

)

 

$

(0.78

)

 

$

(0.90

)

Weighted average number of common shares outstanding – basic and diluted

 

 

97,033,273

 

 

 

87,892,195

 

 

 

91,268,133

 

 

 

87,868,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(22,263

)

 

 

(29,050

)

 

 

(70,981

)

 

 

(79,116

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on marketable securities

 

 

836

 

 

 

(509

)

 

 

3,024

 

 

 

(4,091

)

Comprehensive loss

 

$

(21,427

)

 

$

(29,559

)

 

$

(67,957

)

 

$

(83,207

)

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

2


 

TANGO THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands, except share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

Additional

 

 

Accumulated
Other

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2022

 

 

88,179,374

 

 

$

88

 

 

$

522,605

 

 

$

(3,705

)

 

$

(269,512

)

 

$

249,476

 

Issuance of common stock from exercise of options and employee stock purchase plan

 

 

30,590

 

 

 

 

 

 

73

 

 

 

 

 

 

 

 

 

73

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

4,219

 

 

 

 

 

 

 

 

 

4,219

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

1,504

 

 

 

 

 

 

1,504

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28,008

)

 

 

(28,008

)

Balance at March 31, 2023

 

 

88,209,964

 

 

$

88

 

 

$

526,897

 

 

$

(2,201

)

 

$

(297,520

)

 

$

227,264

 

Issuance of common stock from exercise of options and employee stock purchase plan

 

 

252,880

 

 

 

 

 

 

586

 

 

 

 

 

 

 

 

 

586

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

5,121

 

 

 

 

 

 

 

 

 

5,121

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

684

 

 

 

 

 

 

684

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,710

)

 

 

(20,710

)

Balance at June 30, 2023

 

 

88,462,844

 

 

$

88

 

 

$

532,604

 

 

$

(1,517

)

 

$

(318,230

)

 

$

212,945

 

Issuance of common stock from exercise of options and employee stock purchase plan

 

 

187,639

 

 

 

 

 

 

441

 

 

 

 

 

 

 

 

 

441

 

Issuance of common stock from private placement financing, net

 

 

13,196,671

 

 

 

14

 

 

 

79,762

 

 

 

 

 

 

 

 

 

79,776

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

4,860

 

 

 

 

 

 

 

 

 

4,860

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

836

 

 

 

 

 

 

836

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,263

)

 

 

(22,263

)

Balance at September 30, 2023

 

 

101,847,154

 

 

$

102

 

 

$

617,667

 

 

$

(681

)

 

$

(340,493

)

 

$

276,595

 

 

3


 

 

 

 

 

 

 

 

 

 

Additional

 

 

Accumulated
Other

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2021

 

 

87,598,184

 

 

$

88

 

 

$

506,760

 

 

$

(765

)

 

$

(161,336

)

 

$

344,747

 

Issuance of common stock from exercise of options and employee stock purchase plan

 

 

111,315

 

 

 

 

 

 

265

 

 

 

 

 

 

 

 

 

265

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,205

 

 

 

 

 

 

 

 

 

3,205

 

Business combination and PIPE financing, issuance costs

 

 

 

 

 

 

 

 

(8

)

 

 

 

 

 

 

 

 

(8

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(2,645

)

 

 

 

 

 

(2,645

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25,208

)

 

 

(25,208

)

Balance at March 31, 2022

 

 

87,709,499

 

 

$

88

 

 

$

510,222

 

 

$

(3,410

)

 

$

(186,544

)

 

$

320,356

 

Issuance of common stock from exercise of options and employee stock purchase plan

 

 

288,450

 

 

 

 

 

 

718

 

 

 

 

 

 

 

 

 

718

 

Stock based compensation expense

 

 

 

 

 

 

 

 

3,425

 

 

 

 

 

 

 

 

 

3,425

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(937

)

 

 

 

 

 

(937

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,858

)

 

 

(24,858

)

Balance at June 30, 2022

 

 

87,997,949

 

 

$

88

 

 

$

514,365

 

 

$

(4,347

)

 

$

(211,402

)

 

$

298,704

 

Issuance of common stock from exercise of options and employee stock purchase plan

 

 

69,305

 

 

 

 

 

 

112

 

 

 

 

 

 

 

 

 

112

 

Stock based compensation expense

 

 

 

 

 

 

 

 

3,815

 

 

 

 

 

 

 

 

 

3,815

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(509

)

 

 

 

 

 

(509

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(29,050

)

 

 

(29,050

)

Balance at September 30, 2022

 

 

88,067,254

 

 

$

88

 

 

$

518,292

 

 

$

(4,856

)

 

$

(240,452

)

 

$

273,072

 

 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

4


 

TANGO THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(70,981

)

 

$

(79,116

)

Adjustments to reconcile net loss to net cash from operating activities:

 

 

 

 

 

 

Depreciation

 

 

1,798

 

 

 

1,038

 

Noncash operating lease expense

 

 

2,692

 

 

 

1,538

 

Stock-based compensation

 

 

14,200

 

 

 

10,445

 

(Accretion) amortization on marketable securities

 

 

(1,030

)

 

 

(219

)

Other, net

 

 

22