Company: PRME
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001628280-25-008884
Chunk: 281

Company: Prime Medicine, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 281
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 option activity of the Company was as follows:Year ended December 31,20242023Weighted-average fair value of options granted$5.27 $— As of December 31, 2024 there was $3.0 million of total unrecognized compensation cost related to performance-based stock options.Restricted Common Stock Awards The Company awarded restricted common stock to employees and non-employees under its 2019 Plan and may continue to award restricted common stock to employees and non-employees under the 2022 Plan. The fair value of each share of restricted common stock is based on the market price of the Company's common stock on the date of grant. The vesting of these restricted stock awards are time-based or performance-based.For a period of up to six months from a grantee’s termination, the Company has the right and option to repurchase unvested restricted common stock at the lower of (i) the original purchase price per share or (ii) the fair market value per share as of the date of the Company elects to exercise its repurchase right.Time-Based Restricted Common Stocks AwardsRestricted common stock that have time-based vesting conditions vest over a four-year period, subject to the employee’s continued employment with, or service to, the Company on such vesting date. Compensation expense is recognized on a straight-line basis over the vesting period.The following table summarizes the Company’s time-based restricted common stock award activity for the year ended December 31, 2024:Number of SharesWeighted-Average Grant-Date Fair ValueUnvested restricted common stock at December 31, 2023903,227 $0.17 Issued— — Vested(873,873)0.16 Repurchased(4,423)0.34 Unvested restricted common stock at December 31, 202424,931 $0.16 Performance-Based Restricted Common Stock AwardsPerformance‑based restricted common stock awards vest upon the achievement of performance‑based milestones related to corporate milestones. Stock-based compensation expense associated with the performance-based restricted common stock is recognized if the performance condition is considered probable of achievement using the Company’s best estimates of the time to vesting for the achievement of the performance‑based milestones. Each reporting period, the Company updates its assessment of the probability that the performance-based milestones will be achieved. The fair value of the restricted common stock was based on the fair market value of the Company’s common stock on the date of grant.

F-25

The following table summarizes