Company: LENZ
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001815776-25-000019
Chunk: 203

Company: LENZ Therapeutics, Inc.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 13
Chunk 203
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 product in such country, and (iii) the expiration of regulatory exclusivity with respect to such product in such country. The APA also includes customary representations and warranties, covenants and indemnification obligations for a transaction of this nature.

The disposal of certain assets sold pursuant to the APA was accounted for as a deconsolidation of a subsidiary or group of assets in accordance with ASC 810. During the year ended December 31, 2023, Graphite recognized a loss on disposal of $0.1 million, which was recorded in other income. We will record amounts related to the contingent milestone payments, royalties, and potential transaction fees when contingencies are resolved and amounts are due in accordance with ASC 450. No contingencies were resolved and recorded as of December 31, 2024.

March 2024 PIPE Financing

On November 14, 2023, in connection with the execution of the Merger Agreement, Graphite entered into a subscription agreement with investors. Pursuant to the subscription agreement, on the closing date of the Merger and immediately prior to the effective time of the Merger, the investors subscribed for and purchased an aggregate of 3,559,565 shares of Common Stock at a price of $15.0299 per share for aggregate gross proceeds of approximately $53.5 million. The table below sets forth the number of shares of Common Stock purchased by related party holders in the March 2024 PIPE Financing:

ParticipantShares of Common StockTotal Purchase Price ($)Entities affiliated with RA Capital(1)998,009 $14,999,975 Alpha Wave Ventures II, LP(2)898,209 $13,499,991 Sectoral Asset Management Inc.(3)332,670 $4,999,997 McCollum Living Trust(4)16,633 $249,992 

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(1)Zach Scheiner, a member of the LENZ board of directors, is an affiliate of RA Capital.

(2)Chris Dimitropoulos, a member of LENZ OpCo’s board of directors until immediately prior to the effective time of the Merger, is an affiliate of Alpha Wave Ventures II, LP.

(3)Stefan Larson, a member of LENZ OpCo’s board of directors until immediately prior to the effective time of the Merger, is a partner at Sectoral Asset Management Inc.

(4)James McCollum, a member of the LENZ