Company: PRME
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023486
Chunk: 36

Company: Prime Medicine, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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$24,404 Depreciation expense related to property and equipment is as follows:Three Months Ended March 31,(in thousands)20252024Depreciation Expense$1,700 $1,315 

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5.Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:(in thousands)March 31,2025December 31,2024Accrued expenses and other current liabilitiesEmployee compensation and benefits$4,179 $8,976 Research and clinical costs1,977 907 Facility related317 2,811 License fee— 1,938 Other2,718 1,272 Total accrued expenses and other current liabilities$9,191 $15,904 

6.Leases

The Company leases office and laboratory space under various non-cancelable operating leases. The Company’s significant lease agreements are disclosed in Note 9, Leases, in the audited consolidated financial statements for the year ended December 31, 2024, and notes thereto, included in the Company’s Annual Report on Form 10-K that was filed with the SEC on February 28, 2025. Since the date of those financial statements, there have been no changes to the Company’s significant agreements except as described below.60 First Street, Cambridge, Massachusetts LeaseIn November 2021, the Company entered into a lease for three floors of office and laboratory space in Cambridge, Massachusetts, with rent commencing in March 2024, subject to any credits pursuant to the terms of the lease (the “60 First Street Lease”). Subsequent to the initial non-cancelable term of the lease of ten years, the Company has an option to extend the lease for an additional period of ten years with the rent during the extension term being the then fair market rent. The Company secured the lease with a $13.1 million security deposit, which was recorded as restricted cash on the condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024.Accounting ConsiderationsThe Company determined that the lease contained three separate lease components, each of which represents a right of use that the Company can benefit from on its own and neither of which are highly dependent nor highly related to each other. The Company allocated the consideration among the three lease components based on their relative fair market values.In accordance with ASC 842, Leases, the lease commenced for one of the lease components in March