Company: PRME
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050422
Chunk: 40

Company: Prime Medicine, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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,” or resignation by the Eligible Optionholder for “good reason,” to the extent provided for in the Eligible Optionholder’s employment agreement, offer letter or severance plan (as applicable); or iii.the Eligible Optionholder’s death or disability (as determined in accordance with the Plans, as applicable).Except as modified by the Option Repricing, all other terms and conditions of the Repriced Options, including, without limitation, any provisions with respect to vesting and term of the Repriced Options, will remain in full force and effect. As a result of the option repricing, the Company expects to recognize incremental expense of $5.1 million over a weighted average period of 2.3 years.Performance-Based Restricted Common Stock Awards The Company awarded restricted common stock to employees and non-employees under its 2019 Plan. The following table summarizes the Company’s performance-based restricted common stock activity for the nine months ended September 30, 2025:Number of SharesWeighted-Average Grant-Date Fair ValueOutstanding at December 31, 20243,472,546 $0.06 Issued— — Vested— — Repurchased— — Outstanding at September 30, 20253,472,546 $0.06 Restricted Stock UnitsDuring the three and nine months ended September 30, 2025, the Company issued 2,000,000 restricted stock units. Further, the Company determined that as the obligation underlying the restricted stock units were satisfied during the period, the $8.2 million expense related to the restricted stock units shall be recognized in full during the three 

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and nine months ended September 30, 2025. The amount is recorded as research and development expense on the Company’s condensed consolidated statements of operations.Stock-Based CompensationThe following table below summarizes the classification of the Company’s stock-based compensation expense related to stock options and restricted common stock awards in the condensed consolidated statements of operations and comprehensive loss:Three Months EndedSeptember 30,Nine Months EndedSeptember 30,(in thousands)2025202420252024Stock-based compensation expense:Research and development$10,770 $2,982 $16,844 $9,928 General and administrative1,977 3,845 7,909 10,199 Total stock-based compensation expense$12,747 $6,827 $24,753 $20,127 

9.Significant Agreements