Company: PRME
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001628280-25-008884
Chunk: 276

Company: Prime Medicine, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 276
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 date, the Company recorded a right-of-use asset and a corresponding lease liability, which were not materially different from the existing right-of-use asset and lease liability as of the modification date.

F-20

For accounting purposes, the lease commencement for 500 Arsenal is expected to occur in the first quarter of 2025. Consideration paid for this lease component is recorded as prepaid expense on the consolidated balance sheets and is not recognized until lease commences.Summary of lease costs recognized The following tables contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating leases for the years ended December 31, 2024 and December 31, 2023.The components of lease cost were as follows: Year Ended December 31,(in thousands)20242023Lease cost:Operating lease cost$15,175 $13,664 Variable lease cost5,716 2,145 Short-term lease cost3,512 2,816 Sublease income(168)(168)Total lease cost$24,235 $18,457 The weighted-average remaining lease term and discount rate were as follows:December 31,20242023Weighted average remaining lease term (in years)8.4 years1.9 yearsWeighted average discount rate12.83 %6.92 %Future annual lease payments under non-cancelable operating leases as of December 31, 2024 were as follows:(in thousands)UndiscountedAmountsUndiscounted lease payments:2025$19,773 202623,387 202722,921 202822,294 202921,478 Thereafter96,601 Total undiscounted lease payments206,454 Less: payments related to leases not commenced(136,637)Less: imputed interest(29,023)Total operating lease liability$40,794 

7.Stockholder’s Equity

Common StockUnder the Third Amended and Restated of Certificate of Incorporation, the Company’s common stock had a par value of $0.0001 and each share of common stock entitles the holder to one vote on all matters submitted to the stockholders for a vote. The holders of common stock are entitled to receive dividends, if any, as declared by the Company’s board of directors.

F-21

As previously discussed, in February 2024, the Company issued and sold 22,560,001 shares of its common stock, including 3,360