Nature of the Business and Basis of Presentation

6 Months Ended

Jun. 30, 2017

Nature of the Business and Basis of Presentation

1.	Nature of the Business and Basis of Presentation

Dimension Therapeutics, Inc. (“we” or the “Company”) was incorporated in Delaware on June 20, 2013. The Company is a leader in discovering and developing new therapeutic products for people living with devastating rare and metabolic diseases associated with the liver, based on the most advanced, mammalian adeno-associated virus (AAV) gene delivery technology. The liver is a vital organ that plays an important role in human metabolism and key physiologic functions, and is the target organ for our initial programs: OTC deficiency, GSDIa, Wilson disease, and hemophilia A.

The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations and ability to secure additional capital to fund operations. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales.

In accordance with ASC 205-40, Going Concern, the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued. As of June 30, 2017, the Company had an accumulated deficit of $125,996. During the three and six months ended June 30, 2017, the Company incurred a loss of $12,309 and $25,801, respectively, and during the six months ended June 30, 2017, the Company used $29,495 of cash in operations. The Company expects to continue to generate operating losses in the foreseeable future. The Company expects that its cash, cash equivalents and marketable securities of $47,490 as of June 30, 2017, together with the receipt of contingent payments expected to be received in connection with our collaboration with Bayer, including reimbursements and $15,000 in milestones, and cost management initiatives, will be sufficient to fund its operating expenses and capital expenditure requirements for at least the next 12 months from issuance of the financial statements. Without the Bayer milestone payments, the Company's existing capital resources, as of June 30, 2017 would not be sufficient to fund its operating expenses and capital expenditure requirements through August 8, 2018, or 12 months from issuance of the condensed consolidated financial statements. If the Company does not obtain the Bayer milestone payments, the Company would be forced to delay, reduce or eliminate certain research and development programs, reduce or eliminate discretionary operating expenses, delay product portfolio expansion, which could adversely affect its business prospects. In addition, the Company will seek additional funding through public or private financings, debt financing, collaboration agreements or government grants. The inability to obtain funding, as and when needed, would have a negative impact on the Company’s financial condition and ability to pursue its business strategies. Such contingency plans have not been finalized and are not considered probable for purposes of ASC 205-40. As neither the receipt of the Bayer milestone payments nor management's contingency plans to mitigate the risk and extend cash resources through August 8, 2018, are considered probable under ASC 205-40, substantial doubt is deemed to exist about the Company's ability to continue as a going concern.

The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Dimension Therapeutics, Inc. 10-Q