Company: PRME
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023486
Chunk: 60

Company: Prime Medicine, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 financial statements. The Company is currently evaluating the impact this ASU will have on its disclosures.Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

14

3.Fair Value Measurements and Investments

The following tables present the Company’s fair value hierarchy for its assets that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair value:As of March 31, 2025:(in thousands)Level 1Level 2Level 3TotalCash equivalents:Money market funds$— $62,610 $— $62,610 U.S. Treasury and government securities— 20,797 — 20,797 Corporate debt securities— 7,783 — 7,783 Short-term investments:U.S. Treasury and government securities— 38,583 — 38,583 Corporate debt securities— 9,884 — 9,884 Related party short-term investment:Beam equity securities3,912 — — 3,912 Total cash equivalents and investments$3,912 $139,657 $— $143,569 As of December 31, 2024:(in thousands)Level 1Level 2Level 3TotalCash equivalents:Money market funds$— $178,212 $— $178,212 Corporate debt securities— 3,793 — 3,793 Short-term investment:U.S. Treasury and government securities— 2,998 — 2,998 Related party short-term investment:Beam equity securities4,968 — — 4,968 Total cash equivalents and investments$4,968 $185,003 $— $189,971 The Company classifies its investments as short-term based on each instrument’s underlying contractual maturity date. The fair value of investments classified as Level 2 are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Investments in Debt SecuritiesUnrealized gains and losses of investments in debt securities consisted of the following: As of March 31, 2025:(in thousands)Amortized CostUnrealized GainsUnrealized LossesFair ValueShort-term investments in debt