Company: LENZ
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001815776-25-000071
Chunk: 364

Company: LENZ Therapeutics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 364
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 and development efforts, are expensed as incurred. Research and development expenses consist primarily of: (i) employee related costs, including salaries, benefits and share-based compensation expense for employees engaged in research and development activities; (ii) third-party contract costs relating to research, formulation, manufacturing, nonclinical studies and clinical trial activities; (iii) external costs of outside consultants who assist with technology development, regulatory affairs, clinical development and quality assurance prior to FDA approval; and (iv) allocated facility-related costs.

Costs for certain activities, such as nonclinical studies and clinical trials are generally recognized based on the evaluation of the progress of completion of specific tasks using information and data provided by our vendors and collaborators.

Other Income, Net

Other income, net consists of interest income earned on cash, cash equivalents, and short-term investments, changes in the fair value of long-term investments due to observable price changes in orderly transactions for an identical or similar investment, and the change in fair value of preferred stock warrants liability. 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.

Results of Operations

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Comparison of the Three Months Ended September 30, 2025 and 2024

The following table presents the results of operations for the periods indicated (amounts in thousands, except percentages):

Three Months Ended September 30,20252024$ Change% ChangeLicense revenue$12,500 $— $12,500 N/ASelling, general and administrative expenses27,596 6,494 21,102 325 %Research and development expenses3,791 6,451 (2,660)(41)%Other income, net2,187 2,730 (543)(20)%

License Revenue

License revenue increased during the three months ended September 30, 2025 due to revenue recognized from the upfront payment under the Théa License and the achievement of two regulatory milestones under the CORXEL License. There was no license revenue in the three months ended September 30, 2024.

Selling, General and Administrative

Selling, general and administrative expenses increased $21.1 million, or 325%, to $27.6 million for the three months ended September 30, 2025 compared to $6.5 million for the three months ended September 30, 2024. The change was primarily driven by increases of $12.2 million