prime medicine(PRME) - 2025 Q1 - Quarterly Report

Revenue Generation - The company has not generated any revenue from product sales and does not expect to do so for the foreseeable future, relying instead on research collaboration and license agreements[90]. Research and Development Expenses - Research and development expenses for Q1 2025 totaled $40.6 million, an increase of $2.8 million from $37.8 million in Q1 2024, primarily due to a $3.6 million rise in facility-related expenses[99]. - The company anticipates significant increases in research and development expenses as it advances clinical trials and product candidates[94]. - The company plans to continue research development activities, identify product candidates, and initiate preclinical testing and clinical trials[114]. General and Administrative Expenses - General and administrative expenses for Q1 2025 were $13.3 million, up $2.1 million from $11.2 million in Q1 2024, mainly driven by a $1.3 million increase in personnel expenses[100]. Cash Flow and Financial Position - The company reported a net cash used in operating activities of $48.9 million for Q1 2025, compared to $67.7 million for Q1 2024[108]. - As of March 31, 2025, the company had cash, cash equivalents, and investments totaling $144.3 million, excluding restricted cash[103]. - The accumulated deficit as of March 31, 2025, was $739.1 million, with expectations of continued operating losses for the foreseeable future[104]. - The company expects existing cash, cash equivalents, and investments to fund operating expenses and capital expenditures into the first half of 2026[112]. - As of March 31, 2025, the company held cash, cash equivalents, investments, and restricted cash totaling $158.3 million[122]. Financing Activities - The net cash provided by financing activities for Q1 2025 was $6.0 million, primarily from an agreement with the Cystic Fibrosis Foundation[111]. - Proceeds from the February 2024 public offering amounted to $132.1 million, along with $18.8 million from pre-funded warrants[113]. - Future financing needs may be met through private and public equity offerings, debt financings, and strategic alliances[115]. Investment and Market Risks - The change in fair value of related party short-term investments resulted in a loss of $2.2 million for Q1 2025, compared to a gain of $1.2 million in Q1 2024[101]. - The company is exposed to interest rate risk, but an immediate 10 percent change in interest rates would not materially affect the fair market value of cash equivalents or investments[122]. - Inflation may increase costs related to labor and research and development, potentially impacting financial results in the near future[123].