Company: PRME
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050422
Chunk: 30

Company: Prime Medicine, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact this ASU will have on its disclosures.In September 2025, the FASB issued ASU No. 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. This update introduces a scope exception to derivative accounting for certain contracts with underlyings tied to operations or activities specific to one of the parties. Additionally, the update clarifies that share-based noncash consideration received from a customer should be accounted for under Topic 606 until the right to receive or retain the consideration becomes unconditional. The amendments can be applied prospectively or modified retrospectively and are effective for annual and interim 

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periods beginning after December 15, 2026. The Company is currently evaluating the impact to the Company’s consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

3.Fair Value Measurements and Investments

The following tables present the Company’s fair value hierarchy for its assets that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair value:As of September 30, 2025:(in thousands)Level 1Level 2Level 3TotalCash equivalents:Money market funds$— $53,842 $— $53,842 Corporate debt securities— 11,308 — 11,308 U.S. Treasury and government securities— 5,780 — 5,780 Short-term investments:U.S. Treasury and government securities— 95,781 — 95,781 Corporate debt securities— 41,249 — 41,249 Related party short-term investment:Beam equity securities4,861 — — 4,861 Total cash equivalents and investments$4,861 $207,960 $— $212,821 As of December 31, 2024:(in thousands)Level 1Level 2Level