Tengion Inc. (TNGN, Financial) filed Quarterly Report for the period ended 2010-03-31.
.
Interest Income / Expense and Change in Fair Value of Preferred Stock Warrants. Interest income decreased $0.1 million, or 90%, from the three months ended March 31, 2009 to the three months ended March 31, 2010 due to lower investment balances and lower rates of return on our investments. Interest expense and change in fair value of preferred stock warrants decreased by $0.4 million, or 43%, from $0.9 million for the three months ended March 31, 2009 to $0.5 million for the three months ended March 31, 2010, primarily due to the decline in the estimated fair value of the preferred stock warrants.
Cash used in operating activities decreased $3.2 million for the three months ended March 31, 2010, compared to the three months ended March 31, 2009, primarily due to a decrease in our net loss of $3.3 million driven mainly by our decrease in research and development expense of $2.7 million associated with our preclinical and clinical studies and our decrease in general and administrative expense of $0.2 million related to personnel-related costs and legal and other external services; and a decrease in operating assets and liabilities of $0.2 million, offset by an increase in noncash-interest expense of $0.2 million.
Cash provided by investing activities was $1.4 million for the three months ended March 31, 2010, compared to cash used in investing activities in for the three months ended March 31, 2009 of $4.2 million, primarily due to a decrease in net purchases and sales and redemptions of short-term investments of $5.6 million.
Cash used in financing activities was $4.4 million for the three months ended March 31, 2010, compared to cash provided by financing activities of $0.2 million for the three months ended March 31, 2009, due to an increase in payments of long-term debt of $2.5 million primarily resulting from the end of interest-only payments in January 2009, an increase in payments of $1.3 million related to deferred equity offering costs related to our initial public offering and a decrease of $0.8 million in proceeds from debt financing in the first quarter of 2009.
We have incurred losses in each year since our inception and expect to experience losses for the foreseeable future. As of March 31, 2010, we had an accumulated deficit of $191.7 million. We had net losses of $31.0 million, $42.4 million and $29.8 million in the years ended December 31, 2007, 2008 and 2009, respectively. These losses resulted principally from costs incurred in our clinical trials, research and development programs, construction of our research laboratories and commercial manufacturing facility and from our general and administrative expenses. These losses, among other things, have had and will continue to have an adverse effect on our stockholders equity, total assets and working capital.
Read the The complete Report
.
Highlight of Business Operations:
General and Administrative Expense. General and administrative expense decreased by $248 thousand, or 15%, from $1.7 million for the three months ended March 31, 2009 to $1.4 million for the three months ended March 31, 2010. The decrease in general and administrative expense was due to a decrease in corporate personnel-related costs of $0.2 million primarily related to the reduction in headcount in our executive, finance, legal and human resource functions, as well as lower legal and other external services of approximately $0.1 million.Interest Income / Expense and Change in Fair Value of Preferred Stock Warrants. Interest income decreased $0.1 million, or 90%, from the three months ended March 31, 2009 to the three months ended March 31, 2010 due to lower investment balances and lower rates of return on our investments. Interest expense and change in fair value of preferred stock warrants decreased by $0.4 million, or 43%, from $0.9 million for the three months ended March 31, 2009 to $0.5 million for the three months ended March 31, 2010, primarily due to the decline in the estimated fair value of the preferred stock warrants.
Cash used in operating activities decreased $3.2 million for the three months ended March 31, 2010, compared to the three months ended March 31, 2009, primarily due to a decrease in our net loss of $3.3 million driven mainly by our decrease in research and development expense of $2.7 million associated with our preclinical and clinical studies and our decrease in general and administrative expense of $0.2 million related to personnel-related costs and legal and other external services; and a decrease in operating assets and liabilities of $0.2 million, offset by an increase in noncash-interest expense of $0.2 million.
Cash provided by investing activities was $1.4 million for the three months ended March 31, 2010, compared to cash used in investing activities in for the three months ended March 31, 2009 of $4.2 million, primarily due to a decrease in net purchases and sales and redemptions of short-term investments of $5.6 million.
Cash used in financing activities was $4.4 million for the three months ended March 31, 2010, compared to cash provided by financing activities of $0.2 million for the three months ended March 31, 2009, due to an increase in payments of long-term debt of $2.5 million primarily resulting from the end of interest-only payments in January 2009, an increase in payments of $1.3 million related to deferred equity offering costs related to our initial public offering and a decrease of $0.8 million in proceeds from debt financing in the first quarter of 2009.
We have incurred losses in each year since our inception and expect to experience losses for the foreseeable future. As of March 31, 2010, we had an accumulated deficit of $191.7 million. We had net losses of $31.0 million, $42.4 million and $29.8 million in the years ended December 31, 2007, 2008 and 2009, respectively. These losses resulted principally from costs incurred in our clinical trials, research and development programs, construction of our research laboratories and commercial manufacturing facility and from our general and administrative expenses. These losses, among other things, have had and will continue to have an adverse effect on our stockholders equity, total assets and working capital.
Read the The complete Report
