Company: PRME
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001628280-25-008884
Chunk: 213

Company: Prime Medicine, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 213
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 considered probable according to ASC 205-40, and therefore cannot be considered in the evaluation of mitigating factors. As a result, we concluded that substantial doubt exists about our ability to continue as a going concern for 12 months from the date these consolidated financial statements are issued.

The consolidated financial statements as of December 31, 2024 have been prepared under the assumption that we will continue as a going concern for the next 12 months and that contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. Our ability to continue as a going concern is dependent upon our uncertain ability to obtain additional capital, reduce expenditures and/or execute on its business plan. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Cash Flows 

The following table summarizes our sources and uses of cash for each of the periods presented: 

Year ended December 31,(in thousands)20242023Net change in cash, cash equivalents, and restricted cashNet cash used in operating activities$(122,865)$(165,412)Net cash provided by investing activities68,457 18,711 Net cash provided by financing activities195,876 655 Net change in cash, cash equivalents, and restricted cash$141,468 $(146,046)

117

Operating Activities 

Net cash used in operating activities for the year ended December 31, 2024 was driven primarily by the following uses of cash:

•$195.9 million net loss;

•$15.9 million change in prepaid expenses and other current assets;

•$13.5 million change in accrued settlement payment — related party;

•$6.5 million change in lease liabilities; and

•$5.3 million change in accounts payable.

These were offset by:

•$70.3 million change in deferred revenue;

•$41.9 million of non-cash amounts included in net loss, which consisted primarily of stock-based compensation expense, non-cash lease expense, depreciation and amortization expense, and change in fair value of short-term investment — related party; and

•$1.8 million change in accrued expenses and other assets.

Net cash used in operating activities for the year ended December 31, 2023 was driven primarily by the following uses of cash:

•$198.1 million net loss;

•$12.3 million change in lease liabilities; and

•$9.5 million change in prepaid expenses and other current assets.

These were offset by: