Company: ERAS
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0000950170-25-042682
Chunk: 117

Company: Erasca, Inc.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 16
Chunk 117
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. Two impairment adjustments totaling $2.2 million were made to the value of the Company’s equity investment in Affini-T during the year ended December 31, 2024. The Company was notified by Affini-T of an extension financing in June 2024 and the terms of such financing. Accordingly, the Company reassessed the value of its equity investment in Affini-T using a market approach as of June 30, 2024 and recorded an impairment adjustment of $402,000 to other expense, net in the consolidated statements of operations and comprehensive loss. The impairment was offset by a new investment obligation of approximately $235,000 recorded as of June 30, 2024. In July 2024, the Company paid approximately $157,000 of the new investment obligation related to the extension financing. Subsequently, the Company decided to opt out of paying the remaining $78,000 of the new investment obligation. Accordingly, the Company reassessed the value of its equity investment in Affini-T using a market 

 F-15

approach as of December 31, 2024 and recorded an impairment adjustment of $1.8 million to other expense, net in the consolidated statements of operations and comprehensive loss. These impairment adjustments were determined based on fair value which represented Level 3 nonrecurring fair value measurements. Calculating the fair value of the equity investment involved unobservable inputs, including the terms and preferences of Affini-T's financings, cash flow projections and significant estimates and assumptions. Changes in the estimates and assumptions used could materially affect the amount of impairment losses recognized in the periods the equity investment is considered impaired. No adjustment was made to the value of the Company’s equity investment in Affini-T during the year ended December 31, 2023. No transfers between levels have occurred during the periods presented.  Cash equivalents consist of money market funds, short-term marketable securities consist of US treasury securities, US government agency securities, corporate debt securities, commercial paper, and Yankee debt securities, and long-term marketable securities consist of US treasury securities and US government agency securities. The Company obtains pricing information from its investment manager and generally determines the fair value of marketable securities using standard observable inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, and bid and/or offers.

Note 4. Marketable securities The following tables summarize the Company’s marketable securities accounted for as available-for-sale securities (in thousands, except years):