Company: PRME
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001628280-25-008884
Chunk: 210

Company: Prime Medicine, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 210
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This is offset by a $17.9 million decrease in lab supplies expense as materials used in the current year for our ongoing Phase 1 clinical trial were purchased in advance in 2023.

Settlement Payment — Related Party

In January 2024, we entered into a settlement agreement with Myeloid Therapeutics, Inc., or Myeloid, to resolve two arbitration proceedings. Under the terms of the agreement, the parties agreed to resolve and settle all disputes between the parties and release all claims between them relating to the parties’ license agreement and the arbitrations in exchange for our payment to Myeloid of $13.5 million, certain mutual covenants, and other consideration. 

General and Administrative Expenses

Year ended December 31,(in thousands)20242023ChangeGeneral and administrative expenses:Personnel expenses$26,569 $17,076 $9,493 Professional and consultant fees13,459 17,642 (4,183)Facility related and other10,133 8,669 1,464 Total general and administrative expenses$50,161 $43,387 $6,774 

115

The $6.8 million increase in general and administrative expense for the year ended December 31, 2024 as compared to the year ended December 31, 2023 is primarily driven by:

•$9.5 million increase in personnel expense, a majority of which was an increase in non-cash stock-based compensation expense of $7.4 million; and

•$1.5 million increase in facility related and other primarily related to the ongoing build out of our facility at 60 First Street.

This was offset by a $4.2 million decrease in professional and consultant fees for legal services.

Other Income (Expense)

Year ended December 31,(in thousands)20242023ChangeOther income:Interest income3,522 2,811 711 Accretion (amortization) of investments$3,507 $5,677 $(2,170)Change in fair value of short-term investment — related party(485)(2,382)1,897 Other income, net41 274 (233)Total other income, net$6,585 $6,380 $205 

Accretion of investments

Accretion (amortization) of investments for each of the periods presented is a result of the price at which our investments are purchased. If the investments are