tndm-20240331

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, 2024


☐			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

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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 26, 2024, there were 64,589,518 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, 2024 (Unaudited) and December 31, 2023	1
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2024 and 2023 (Unaudited)	2
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2024 and 2023 (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (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	32
Item 4	Controls and Procedures	32

Part II	Other Information	33
Item 1	Legal Proceedings	33
Item 1A	Risk Factors	33
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	72
Item 5	Other Information	72
Item 6	Exhibits	73

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,
	2024		2023
Assets	(Unaudited)		(Note 1)
Current assets:
Cash and cash equivalents	$	58,979	$	58,868
Short-term investments	408,831		409,044
Accounts receivable, net	92,965		105,555
Inventories	153,893		157,937
Prepaid and other current assets	20,525		16,585
Total current assets	735,193		747,989
Property and equipment, net	77,530		76,542
Operating lease right-of-use assets	88,286		87,791
Other long-term assets	40,036		40,336
Total assets	$	941,045	$	952,658
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	48,143	$	49,586
Accrued expenses	10,932		12,726
Employee-related liabilities	41,676		43,430
Operating lease liabilities	17,320		17,060
Deferred revenue	44,562		43,994

Other current liabilities	30,338		28,462
Total current liabilities	192,971		195,258

Convertible senior notes, net - long-term	347,497		285,035
Operating lease liabilities - long-term	112,732		113,572
Deferred revenue - long-term	12,299		13,331
Other long-term liabilities	32,482		31,830
Total liabilities	697,981		639,026
Commitments and contingencies (Note 13)	—		—
Stockholders’ equity:
Common stock, $0.001 par value; 200,000 shares authorized, 64,563 and 65,552 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively.	65		66
Additional paid-in capital	1,238,449		1,263,997
Accumulated other comprehensive income (loss)	(935)		1,369
Accumulated deficit	(994,515)		(951,800)
Total stockholders’ equity	243,064		313,632
Total liabilities and stockholders’ equity	$	941,045	$	952,658

See accompanying notes to unaudited condensed consolidated financial statements.

TANDEM DIABETES CARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands, except per share data)


	Three Months Ended March 31,
	2024		2023
Sales	$	191,674	$	169,383
Cost of sales	97,002		86,476
Gross profit	94,672		82,907
Operating expenses:
Selling, general and administrative	90,106		89,814
Research and development	46,244		42,160
Acquired in-process research and development expenses	—		78,750
Total operating expenses	136,350		210,724
Operating loss	(41,678)		(127,817)
Other income (expense), net:
Interest income and other, net	5,314		5,865
Interest expense	(1,897)		(1,634)
Loss on extinguishment of debt	(1,268)		—

Total other income (expense), net	2,149		4,231
Loss before income taxes	(39,529)		(123,586)
Income tax expense	3,186		287
Net loss	$	(42,715)	$	(123,873)
Other comprehensive income (loss):
Unrealized gain (loss) on short-term investments	$	(1,296)	$	1,749
Foreign currency translation losses	(1,008)		(25)
Comprehensive loss	$	(45,019)	$	(122,149)

Net loss per share - basic and diluted	$	(0.65)	$	(1.92)

Weighted average shares used to compute basic and diluted net loss per share	65,326		64,549

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, 2024


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2023	65,552	$	66	$	1,263,997	$	1,369	$	(951,800)	$	313,632
Stock repurchase and retirement of shares	(1,107)	(1)		(29,999)		—		—		(30,000)
Exercise of stock options	14	—		248		—		—		248
Vesting of restricted stock units, net of shares withheld for taxes	104	—		(1,759)		—		—		(1,759)



Stock-based compensation expense	—	—		21,591		—		—		21,591
Purchase of capped call options related to convertible notes due 2029	—	—		(15,813)		—		—		(15,813)
Unwind of capped call options related to convertible notes due 2025	—	—		184		—		—		184
Unrealized loss on short-term investments	—	—		—		(1,296)		—		(1,296)
Foreign currency translation losses	—	—		—		(1,008)		—		(1,008)
Net loss	—	—		—		—		(42,715)		(42,715)
Balance at March 31, 2024	64,563	$	65

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