tndm-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________________________

FORM 10-Q

_____________________________________________________________________________________________


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

For the Quarterly Period Ended March 31, 2023


☐			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 001-36189

_____________________________________________________________________________________________

Tandem Diabetes Care, Inc.

(Exact name of registrant as specified in its charter)

_____________________________________________________________________________________________


Delaware		20-4327508
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
12400 High Bluff Drive		92130
San Diego,	California	(Zip Code)
(Address of principal executive offices)

(858) 366-6900

(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 Exchange on Which Registered
Common Stock, par value $0.001 per share	TNDM	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 x 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, a smaller reporting company or an emerging growth company. See 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 April 28, 2023, there were 64,621,839 shares of the registrant’s Common Stock outstanding.

TABLE OF CONTENTS


Part I	Financial Information	1
Item 1	Financial Statements	1
	Condensed Consolidated Balance Sheets at March 31, 2023 (Unaudited) and December 31, 2022	1
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	2
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022 (Unaudited)	4
	Notes to Unaudited Condensed Consolidated Financial Statements	5
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4	Controls and Procedures	34

Part II	Other Information	36
Item 1	Legal Proceedings	36
Item 1A	Risk Factors	36
Item 6	Exhibits	37

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

TANDEM DIABETES CARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)


	March 31,		December 31,
	2023		2022
Assets	(Unaudited)		(Note 1)
Current assets:
Cash and cash equivalents	$	127,762	$	172,517
Short-term investments	391,826		444,384
Accounts receivable, net	91,393		114,717
Inventories	131,557		111,117
Prepaid and other current assets	15,381		7,241
Total current assets	757,919		849,976
Property and equipment, net	74,578		68,552
Operating lease right-of-use assets	104,743		110,626
Other long-term assets	16,905		23,631
Total assets	$	954,145	$	1,052,785
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	55,231	$	55,730
Accrued expenses	10,477		9,595
Employee-related liabilities	38,697		38,682
Operating lease liabilities	15,849		13,121
Deferred revenue	20,764		18,837

Other current liabilities	30,139		29,325
Total current liabilities	171,157		165,290

Convertible senior notes, net - long-term	283,679		283,232
Operating lease liabilities - long-term	120,867		123,524
Deferred revenue - long-term	15,886		16,874
Other long-term liabilities	23,803		23,918
Total liabilities	615,392		612,838
Commitments and contingencies (Note 13)	—		—
Stockholders’ equity:
Common stock, $0.001 par value; 200,000 shares authorized, 64,609 and 64,513 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively.	65		65
Additional paid-in capital	1,191,843		1,170,888
Accumulated other comprehensive loss	(93)		(1,817)
Accumulated deficit	(853,062)		(729,189)
Total stockholders’ equity	338,753		439,947
Total liabilities and stockholders’ equity	$	954,145	$	1,052,785

See accompanying notes to unaudited condensed consolidated financial statements.

TANDEM DIABETES CARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(In thousands, except per share data)


	Three Months Ended March 31,
	2023		2022
Sales	$	169,383	$	175,907
Cost of sales	86,476		84,814
Gross profit	82,907		91,093
Operating expenses:
Selling, general and administrative	89,814		73,271
Research and development	42,160		33,160
Acquired in-process research and development expenses	78,750		—
Total operating expenses	210,724		106,431
Operating loss	(127,817)		(15,338)
Other income (expense), net:
Interest income and other, net	5,865		415
Interest expense	(1,634)		(1,516)


Total other income (expense), net	4,231		(1,101)
Loss before income taxes	(123,586)		(16,439)
Income tax expense (benefit)	287		(1,724)
Net loss	$	(123,873)	$	(14,715)
Other comprehensive income (loss):
Unrealized gain (loss) on short-term investments	$	1,749	$	(2,517)
Foreign currency translation gains (losses)	(25)		72
Comprehensive loss	$	(122,149)	$	(17,160)

Net loss per share - basic and diluted	$	(1.92)	$	(0.23)

Weighted average shares used to compute basic and diluted net loss per share	64,549		63,880

See accompanying notes to unaudited condensed consolidated financial statements.

TANDEM DIABETES CARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(In thousands)

Three Months Ended March 31, 2023


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2022	64,513	$	65	$	1,170,888	$	(1,817)	$	(729,189)	$	439,947
Exercise of stock options	45	—		857		—		—		857
Vesting of restricted stock units, net of shares withheld for taxes	51	—		(1,398)		—		—		(1,398)



Stock-based compensation expense	—	—		21,496		—		—		21,496
Unrealized gain on short-term investments	—	—		—		1,749		—		1,749
Foreign currency translation losses	—	—		—		(25)		—		(25)
Net loss	—	—		—		—		(123,873)		(123,873)
Balance at March 31, 2023	64,609	$	65	$	1,191,843	$	(93)	$	(853,062)	$	338,753

Three Months Ended March 31, 2022


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2021	63,833	$	64	$	1,068,259	$	(616)	$	(634,595)	$	433,112

Exercise of stock options	101	—		3,782		—		—		3,782
Vesting of restricted stock units, net of shares withheld for taxes	5	—		(299)		—		—		(299)

Exercise of common stock warrants	2	—		16		—		—		16

Stock-based compensation expense	—	—		17,931		—		—		17,931
Unrealized loss on short-term investments	—	—		—		(2,517)		—		(2,517)
Foreign currency translation gains	—

SEC Form 10-Q filed by Tandem Diabetes Care Inc.