Company: LENZ
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001815776-25-000071
Chunk: 348

Company: LENZ Therapeutics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 348
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 prepaid expenses and other current assets in the condensed consolidated balance sheets. We did not write off any accrued interest receivables for the nine months ended September 30, 2025 and 2024.The Company did not transfer any assets measured at fair value on a recurring basis between levels during the nine months ended September 30, 2025 and 2024.The following table presents activity for the preferred stock warrants liability during the nine months ended September 30, 2024 (in thousands):Preferred Stock Warrants LiabilityBalance at December 31, 2023$871 Change in fair value1,047 Conversion of preferred stock warrants liability to equity(1,918)Balance at September 30, 2024$— The warrants’ estimated fair value as of the Merger date utilized the Black-Scholes model and the following input assumptions: risk free interest rate (4.3% - 4.4%), expected term (3.6 - 4.1 years), dividend yield (0.0%), volatility (103.0% - 104.0%) and exercise price ($10.64 per common share).No fair value liabilities exist as of September 30, 2025. Upon completion of the Merger, the preferred stock warrants became exercisable into shares of common stock and will no longer continue to be remeasured at each reporting date. Refer to Note 2 for further discussion on the valuation of the preferred stock warrants liability.

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Equity investment without a readily determinable fair valueIn conjunction with the Merger, the Company obtained an investment in common stock of an unfunded privately held, pre-clinical life sciences company, which the Company initially carried at no value. In May 2024, the private company executed a seed funding round (“Seed Financing”), which triggered an anti-dilution provision under the License and Option Agreement (“Option Agreement”), resulting in the issuance of additional shares of common stock. The Company identified the Seed Financing as an observable price change under the measurement alternative, and adjusted the equity investment from zero to an estimated fair value of $1.3 million at the time of the Seed Financing. In May 2025, the private company executed an extension of the initial seed funding round (“Seed Extension”), which the Company identified as an observable price change under the measurement alternative, and resulted in a $0.2 million increase in the fair value of the equity investment. There were no other upward or downward adjustments to the carrying value of the Company's investment