What changed in this filing

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Item 1. Financial Statements

2025-08-12 compared with 2025-05-12 · 122 added, 82 removed, 377 unchanged (35% of the section changed)

32 unchanged sentences

Common stock, $ 0.0001 par value per share:

195,000,000 shares authorized;

83,709,536 and 82,734,696 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively

390,000,000 and 195,000,000 shares authorized at June 30, 2025 and December 31, 2024, respectively;

87,388,425 and 82,734,696 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 1,616,931 1,602,441

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Collaboration and other research and development revenues $ 3,578 $ 513 $ 8,236 $ 1,649

5 unchanged sentences

Operating loss ( 51,544 ) ( 71,903 ) ( 127,707 ) ( 138,893 )

Other income, net:

Other (expense) income, net:

Other (expense) income, net ( 1,758 ) ( 1 ) ( 2,183 ) 5

Interest related to sale of future revenues ( 2,020 ) — ( 4,236 ) —

Interest income, net 2,087 4,297 4,803 9,331

Total other income, net 75 5,041

Total other (expense) income, net ( 1,691 ) 4,296 ( 1,616 ) 9,336

Net loss $ ( 53,235 ) $ ( 67,607 ) $ ( 129,323 ) $ ( 129,557 )

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Net loss $ ( 53,235 ) $ ( 67,607 ) $ ( 129,323 ) $ ( 129,557 )

20 unchanged sentences

Balance at March 31, 2025 83,709,536 $ 8 $ 1,606,855 $ 88 $ ( 1,544,531 ) $ 62,420

Issuance of common stock from at the market equity offering 3,419,836 1 7,184 — — 7,185

Stock-based compensation expense — — 2,664 — — 2,664

Vesting of restricted common stock awards 102,894 — — — — —

Issuance of common stock under employee stock purchase plan 156,159 — 228 — — 228

Unrealized loss on marketable debt securities — — — ( 73 ) — ( 73 )

Net loss — — — — ( 53,235 ) ( 53,235 )

Balance at June 30, 2025 87,388,425 $ 9 $ 1,616,931 $ 15 $ ( 1,597,766 ) $ 19,189

Common Stock Additional

12 unchanged sentences

Balance at March 31, 2024 82,234,951 $ 8 $ 1,588,018 $ ( 326 ) $ ( 1,293,300 ) $ 294,400

Stock-based compensation expense — — 5,010 — — 5,010

Vesting of restricted common stock awards 121,643 — — — — —

Issuance of common stock under employee stock purchase plan 72,920 — 322 — — 322

Unrealized loss on marketable debt securities — — — ( 116 ) — ( 116 )

Net loss — — — — ( 67,607 ) ( 67,607 )

Balance at June 30, 2024 82,429,514 $ 8 $ 1,593,350 $ ( 442 ) $ ( 1,360,907 ) $ 232,009

The accompanying notes are an integral part of the condensed consolidated financial statements.

2 unchanged sentences

(amounts in thousands)

Three Months Ended

Six Months Ended

Cash flow from operating activities

3 unchanged sentences

Depreciation 3,751 2,829

Loss on disposal of fixed assets 2,193 —

Net amortization of premiums and discounts on marketable securities ( 840 ) ( 3,596 )

Other non-cash items 492 —

Impairment of held for sale assets 3,724 —

Interest related to sale of future revenues 4,236 —

Impairment of held for sale assets 3,724 —

Other non-cash items ( 390 ) ( 415 )

Changes in operating assets and liabilities:

12 unchanged sentences

Purchases of property and equipment ( 114 ) ( 5,365 )

Proceeds from the sale of equipment 151 —

Purchases of marketable securities — ( 86,221 )

Proceeds from maturities of marketable securities 99,000 138,795

Net cash provided by (used in) investing activities 56,387 ( 4,745 )

Net cash provided by investing activities $ 99,037 $ 47,209

Cash flow from financing activities

2 unchanged sentences

Proceeds from exercise of stock options — 192

Net cash (used in) provided by financing activities ( 1,437 ) 192

Proceeds from issuance of common stock under employee stock purchase plan 228 322

Net cash provided by financing activities $ 5,975 $ 514

Net increase (decrease) in cash, cash equivalents, and restricted cash 7,001 ( 59,211 )

4 unchanged sentences

Cash, cash equivalents, and restricted cash, end of period $ 142,419 $ 68,318

1 As of March 31, 2025 and March 31, 2024, restricted cash of $ 3,877 and $ 3,877 was included in Restricted cash and other non-current assets on the Consolidated Balance Sheet, respectively.

1 As of June 30, 2025 and June 30, 2024, restricted cash of $ 3,877 and $ 3,877 was included in Restricted cash and other non-current assets on the Consolidated Balance Sheet, respectively.

Supplemental disclosure of cash and non-cash activities:

2 unchanged sentences

Remeasurement of operating lease liabilities and right-of-use assets due to lease modification $ 766 $ 794

Commencement of right-of-use asset $ — $ 7,844

Non-cash termination of right-of-use asset $ 4,849 $ —

The accompanying notes are an integral part of the condensed consolidated financial statements.

3 unchanged sentences

Editas Medicine, Inc.

(the “Company”) is an early stage genome editing company dedicated to developing potentially transformative genomic medicines to treat a broad range of serious diseases.

(the “Company”) is a pioneering gene editing company dedicated to developing potentially transformative genomic medicines to treat a broad range of serious diseases.

The Company was incorporated in the state of Delaware in September 2013.

4 unchanged sentences

The Company is subject to risks common to companies in the biotechnology industry, including but not limited to, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval for any drug product candidate that it may identify and develop, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development by competitors of technological innovations and ability to transition from pilot-scale manufacturing to large-scale production of products.

As of March 31, 2025, the Company has raised an aggregate of $ 1.0 billion in net proceeds through the sale of shares of its common stock in public offerings and at-the-market offerings.

The Company also has funded its business from payments received under its purchase and sale agreement with DRI, payments received under its license agreement with Vertex, its research collaboration with BMS through its wholly owned subsidiary Juno Therapeutics and its former strategic alliance with Allergan (which was terminated in August 2020).

As of March 31, 2025, the Company had cash, cash equivalents and marketable securities of $ 221.0 million.

As of June 30, 2025, the Company has raised an aggregate of $ 1.0 billion in net proceeds through the sale of shares of its common stock in public offerings and at-the-market offerings.

The Company also has funded its business from payments received under its purchase and sale agreement with DRI, payments received under the Vertex License Agreement, its research collaboration with BMS through its wholly owned subsidiary Juno Therapeutics and its former strategic alliance with Allergan (which was terminated in August 2020).

As of June 30, 2025, the Company had cash, cash equivalents and marketable securities of $ 178.5 million.

In May 2021, the Company entered into a common stock sales agreement with TD Securities (USA) LLC (as successor to Cowen and Company, LLC) (“TD Cowen”), under which the Company from time to time can issue and sell shares of the Company’s common stock through TD Cowen in at-the-market offerings for aggregate gross sale proceeds of up to $ 300.0 million.

1 unchanged sentence

In March 2025, the Company further amended its common stock sales agreement with TD Cowen in connection with amending its existing shelf registration statement following the loss of the Company’s status as a “well-known seasoned issuer” (as defined under Rule 405 of the Securities Act of 1933, as amended), reducing the amount of shares of common stock the Company may issue and sell through TD Cowen to aggregate gross sale proceeds of up to $ 150.0 million (the “ATM Facility”).

As of March 31, 2025, the Company has sold 706,236 shares of common stock under the ATM Facility for gross proceeds of $ 1.4 million and has $ 148.6 million available under the ATM Facility.

As of June 30, 2025, the Company has sold 4,126,072 shares of common stock under the ATM Facility for gross proceeds of $ 8.6 million and has $ 141.4 million available under the ATM Facility.

The Company has incurred annual net operating losses in every year since its inception.

As of May 12, 2025, the issuance date of the consolidated financial statements, the Company expects that its existing cash, cash equivalents and marketable securities will be sufficient to fund its operating expenses and capital expenditure requirements for at least twelve months from the issuance date of the consolidated financial statements.

The Company had an accumulated deficit of $ 1.5 billion at March 31, 2025, and will require substantial additional capital to fund its operations.

As of August 12, 2025, the issuance date of the consolidated financial statements, the Company expects that its existing cash, cash equivalents and marketable securities will be sufficient to fund its operating expenses and capital expenditure requirements for at least twelve months from the issuance date of the consolidated financial statements.

The Company had an accumulated deficit of $ 1.6 billion at June 30, 2025, and will require substantial additional capital to fund its operations.

The Company has never generated any product revenue.

10 unchanged sentences

The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

Refer to Note 14, “Subsequent Events,” for further information on events and transactions that have occurred after the balance sheet date but before the financial statements are issued.

The three months ended March 31, 2025 and 2024 are referred to as the first quarter of 2025 and 2024, respectively.

The three months ended June 30, 2025 and 2024 are referred to as the second quarter of 2025 and 2024, respectively.

The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period.

13 unchanged sentences

Recently Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740):

Improvements to Income Tax

Disclosures .

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09 Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures.

4 unchanged sentences

Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03 Income Statement - Reporting Comprehensive Income -Expense Disaggregation Disclosures (Subtopic 220-40):

In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income -Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses , which is intended to improve the disclosure of expenses by providing more detailed information about the types of expenses in commonly presented expense captions.

4 unchanged sentences

Cash Equivalents and Marketable Securities

Cash equivalents and marketable securities consisted of the following at March 31, 2025 (in thousands):

Cash equivalents and marketable securities consisted of the following at June 30, 2025 (in thousands):

Cost Allowance

10 unchanged sentences

Total $ 269,645 $ — $ 289 $ ( 21 ) $ 269,913

As of March 31, 2025, the Company did not hold any marketable securities that were in a continuous unrealized loss position for more than twelve months.

As of June 30, 2025, the Company did not hold any marketable securities that were in a continuous unrealized loss position for more than twelve months.

Furthermore, the Company has determined that there were no material changes in the credit risk of the securities.

As of March 31, 2025, the Company holds no securities with remaining maturities greater than one year .

There were no realized gains or losses on available-for-sale securities during the three months ended March 31, 2025 or 2024.

As of June 30, 2025, the Company holds no securities with remaining maturities greater than one year .

There were no realized gains or losses on available-for-sale securities during the six months ended June 30, 2025 or 2024.

Fair Value Measurements

Assets measured at fair value on a recurring basis as of March 31, 2025 were as follows (in thousands):

Assets measured at fair value on a recurring basis as of June 30, 2025 were as follows (in thousands):

2025 Quoted Prices

22 unchanged sentences

Total financial assets $ 273,790 $ 267,289 $ 6,501 $ —

The fair value of the Company’s liability for sale of future revenues approximates the amount recorded on the Company’s balance sheet as of June 30, 2025 and December 31, 2024, which represents a level 3 fair value measurement.

Accrued Expenses

6 unchanged sentences

Professional service expenses 432 1,593

Restructuring charges 30,542 12,232

Employee termination benefits 6,592 10,475

Contract termination costs 33,743 1,757

Other expenses 258 808

Total accrued expenses $ 48,068 $ 45,859

Property and Equipment, net and Assets Held for Sale

Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):

9 unchanged sentences

Property and equipment, net $ 4,576 $ 14,497

At March 31, 2025, $ 0.3 million of laboratory and manufacturing equipment was held for sale and included in Prepaid expenses and other current assets on the Consolidated Balance Sheet.

Refer to Note 12, “Restructuring and Impairment Charges” for further information.

Commitments and Contingencies

The Company is a party to a number of license agreements under which the Company licenses patents, patent applications and other intellectual property from third parties.

As such, the Company is obligated to pay licensors for various costs including upfront licenses fees, annual license fees, certain licensor expense reimbursements, success payments, research funding payments, and milestones triggerable upon certain development, regulatory, and commercial events as well as royalties on future products.

As such, the Company is obligated to pay licensors for various costs including upfront license fees, annual license fees, certain licensor expense reimbursements, success payments, research funding payments, and milestones triggerable upon certain development, regulatory, and commercial events as well as royalties on future product sales.

These contracts are generally cancellable, with notice, at the Company’s option and do not have significant cancellation penalties.

3 unchanged sentences

The Company is obligated to reimburse The Broad Institute, Inc.

(“Broad”) and the President and Fellows of Harvard College (“Harvard”) for expenses incurred by each of them associated with the prosecution and maintenance of the patent rights that the Company licenses from them pursuant to the license agreement by and among the Company, Broad and Harvard, including the interference and opposition proceedings involving patents licensed to the Company under the license agreement, and other license agreements between the Company and Broad.

(“Broad”) and the President and Fellows of Harvard College (“Harvard”) for expenses incurred by each of them associated with the prosecution and maintenance of the patent rights that the Company licenses from them pursuant to the Amended and Restated Cas9-I License Agreement by and among the Company, Broad and Harvard, including the interference and opposition proceedings involving patents licensed to the Company under the license agreement, and other license agreements between the Company and Broad.

As such, the Company anticipates that it has a substantial commitment in connection with these proceedings until such time as these proceedings have been resolved, but the amount of such commitment is not determinable.

The Company incurred an aggregate of $ 1.9 million and $ 2.0 million in expense during the three months ended March 31, 2025, and March 31, 2024, respectively, for such reimbursement.

The Company incurred an aggregate of $ 2.3 million and $ 4.2 million in expenses during the three and six months ended June 30, 2025.

The Company incurred an aggregate of $ 2.5 million and $ 4.6 million in expense during the three months and six months ended June 30, 2024, respectively, for such reimbursement.

Lease Termination

In 2023, the Company entered into a license and service agreement pursuant to which it leased manufacturing space for its continued research and development activities.

The lease commenced April 1, 2024.

In September 2024, the Company modified the lease, and as a result of the modification the lease payments decreased and the notification period for the termination of the license and service agreement increased from 12 months’ prior written notice to 18 months’ prior written notice.

In January 2025, the Company gave its termination notice on the license and service agreement, which resulted in the end of the term of the agreement being July 2026, and $ 8.9 million of remaining payments owed.

In April 2025, the Company further modified the lease to terminate on April 30, 2025 with a final fixed payment of $ 3.7 million.

Collaboration Agreements

The Company has entered into multiple collaborations, out-licenses and strategic alliances with third parties that typically involve payments to or from the Company, including up-front payments, payments for research and development services, option payments, milestone payments and royalty payments to or from the Company.

The terms and conditions as well as the accounting analysis for the Company’s significant collaborations, out-licenses and strategic alliances are described in Note 9, “Collaboration Agreements” to the consolidated financial statements included in the Annual Report.

The terms and conditions as

well as the accounting analysis for the Company’s significant collaborations, out-licenses and strategic alliances are described in Note 9, “Collaboration Agreements” to the consolidated financial statements included in the Annual Report.

There have been no other material changes to the terms and conditions, or the accounting conclusions, previously disclosed in the Annual Report.

Collaboration Revenue

As of March 31, 2025, the Company’s contract liabilities were primarily related to the Company’s collaboration with BMS.

The following table presents changes in the Company’s accounts receivable and contract liabilities for the three months ended March 31, 2025 (in thousands):

Balance at December 31, 2024 Additions Deductions Balance at March 31, 2025

As of June 30, 2025, the Company’s contract liabilities were primarily related to the Company’s collaboration with BMS.

The following table presents changes in the Company’s accounts receivable and contract liabilities for the six months ended June 30, 2025 (in thousands):

Balance at December 31, 2024 Additions Deductions Balance at June 30, 2025

Accounts receivable $ 16,266 $ 2,181 $ ( 17,859 ) $ 588

1 unchanged sentence

Deferred revenue $ 60,425 $ — $ ( 6,221 ) $ 54,204

During the three and six months ended June 30, 2025 and 2024, the Company recognized the following collaboration revenue (in thousands):

Revenue recognized in the period from:

2025 June 30,

Three Months Ended Six Months Ended Three Months Ended Six Months Ended

Amounts included in deferred revenue at the beginning of the period $ 2,000 $ 6,221 $ $ — $ —

Performance obligations satisfied in previous periods $ — $ — $ $ — $ —

Amendment to BMS Collaboration Agreement

2 unchanged sentences

The Company’s accounting assessment for the 2024 Amendment is described in Note 9, “Collaboration Agreements,” to the consolidated financial statements included in the Annual Report.

During the three months ended March 31, 2025 the Company did not recognize any of the $ 56.7 million transaction price.

As of March 31, 2025, there was no short-term deferred revenue and $ 50.2 million of long-term deferred revenue in the accompanying consolidated balance sheets.

As of June 30, 2025, there was no short-term deferred revenue and $ 50.2 million of long-term deferred revenue in the accompanying consolidated balance sheets.

Stock-based Compensation

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Research and development $ 863 $ 2,125 $ 1,770 $ 5,033

2 unchanged sentences

Restricted Stock Unit Awards

The following is a summary of restricted stock unit awards activity for the three months ended March 31, 2025:

The following is a summary of restricted stock unit awards activity for the six months ended June 30, 2025:

Shares Weighted Average Grant Date Fair Value Per Share

3 unchanged sentences

Forfeited ( 1,033,046 ) $ 10.11

Unvested restricted stock unit awards as of March 31, 2025 1,499,103 $ 9.24

There were no restricted stock units that contained performance-based vesting provisions granted in the three months ended March 31, 2025.

There was no expense related to the vesting of performance-based restricted stock units for the three months ended March 31, 2025 and $ 3.4 million of expense related to the vesting of performance-based restricted stock units for the three months ended March 31, 2024.

As of March 31, 2025, total unrecognized compensation expense related to unvested restricted stock unit awards was $ 8.4 million, which the Company expects to recognize over a remaining weighted-average period of 2.18 years.

Unvested restricted stock unit awards as of June 30, 2025 923,539 $ 9.15

There were no restricted stock units that contained performance-based vesting provisions granted in the six months ended June 30, 2025.

There was no expense related to the vesting of performance-based restricted stock units for the three and six months ended June 30, 2025 and $ 0.1 million and $ 3.5 million of expense related to the vesting of performance-based restricted stock units for the three and six months ended June 30, 2024, respectively.

As of June 30, 2025, total unrecognized compensation expense related to unvested restricted stock unit awards was $ 6.4 million, which the Company expects to recognize over a remaining weighted-average period of 1.99 years.

Stock Options

The following is a summary of stock option activity for the three months ended March 31, 2025:

The following is a summary of stock option activity for the six months ended June 30, 2025:

Shares Weighted Average

5 unchanged sentences

Cancelled ( 2,791,231 ) $ 11.85

Outstanding at March 31, 2025 11,253,667 $ 8.84 8.22 $ —

Exercisable at March 31, 2025 3,646,110 $ 18.34 5.87 $ —

As of March 31, 2025, total unrecognized compensation expense related to stock options was $ 21.6 million, which the Company expects to recognize over a remaining weighted-average period of 2.9 years.

Outstanding at June 30, 2025 10,445,817 $ 8.54 7.71 $ 2,505

Exercisable at June 30, 2025 4,026,696 $ 16.59 5.23 $ 120

As of June 30, 2025, total unrecognized compensation expense related to stock options was $ 15.1 million, which the Company expects to recognize over a remaining weighted-average period of 2.7 years.

Net Loss per Share

16 unchanged sentences

The Company estimates the effective interest rate used to record non-cash interest expense under the Purchase and Sale Agreement based on the estimate of future revenue payments to be made to DRI.

As of March 31, 2025, the estimated effective interest rate under the agreement was 15.7 %.

As of June 30, 2025, the estimated effective interest rate under the agreement was 15.1 %.

Over the life of the arrangement, the actual effective interest rate will be affected by the amount and timing of the payments made to DRI and changes in the Company's revenue forecasts.

At each reporting date, the Company will reassess its estimate of total future payments to be made to DRI, and prospectively adjust the effective interest rate and amortization of the liability as necessary.

The following table presents the changes in the liability related to the sale of future revenues under the Purchase and Sale Agreement with DRI as of March 31, 2025 (in thousands):

March 31, 2025

The following table presents the changes in the liability related to the sale of future revenues under the Purchase and Sale Agreement with DRI as of June 30, 2025 (in thousands):

June 30, 2025

Deferred royalty obligation related to the sale of future revenues, net as of December 31, 2024

2 unchanged sentences

Amortization of issuance costs 119

Deferred royalty obligation related to the sale of future revenues, net as of March 31, 2025

Deferred royalty obligation related to the sale of future revenues, net as of June 30, 2025

Restructuring and Impairment Charges

On December 11, 2024, the Board approved the discontinuation of the clinical development of the Company's reni-cel program (the “Discontinuation”) to treat sickle cell disease and transfusion-dependent beta thalassemia.

On December 11, 2024, the Company’s board of directors approved the discontinuation of the clinical development of the Company's reni-cel program to treat sickle cell disease and transfusion-dependent beta thalassemia (the “Discontinuation”).

As a result of the Discontinuation, the Company has ceased activities towards the filing of a biologic license application and potential commercialization of reni-cel.

In connection with the Discontinuation, the Board also approved a reduction in the Company’s employee workforce by approximately 180 positions, or approximately 65 % (the “Reduction”).

Since the Discontinuation and Reduction started in December 2024 through the three months ended March 31, 2025, the Company has incurred the following restructuring and impairment charges (in thousands):

Since the Discontinuation and Reduction started in December 2024 through the six months ended June 30, 2025, the Company has incurred the following restructuring and impairment charges (in thousands):

Employee termination benefits $ 14,797

Costs for ongoing contracts and terminated contracts 54,098

Acceleration of expense for change in useful life estimate 4,745

Acceleration of expense for change in useful life estimate and lease termination 6,548

Impairment charges 3,724

Total restructuring and impairment charges $ 79,167

The Company incurred the following restructuring and impairment charges for the three months ended March 31, 2025, which are recorded in the consolidated statement of operations (in thousands):

The Company incurred the following restructuring and impairment charges for the three and six months ended June 30, 2025, which are recorded in the consolidated statements of operations (in thousands):

Three Months Ended

June 30, Six Months Ended

Employee termination benefits $ 813 $ 4,322

Costs for ongoing contracts and terminated contracts 23,466 52,341

Acceleration of expense for change in useful life estimate 4,745

Acceleration of expense for change in useful life estimate and lease termination 1,803 6,548

Impairment charges — 3,724

4 unchanged sentences

For employees who were notified of their termination in December 2024 and had no requirements to provide future services or were subject to the Benefit Plan, the Company recognized the liability for the termination benefits in full at fair value in the fourth quarter of 2024.

For employees who are required to render services beyond a minimum retention period to receive their one-time termination benefits or salary continuation, the Company is recognizing the termination benefits ratably over their future service periods.

For employees who are required to

render services beyond a minimum retention period to receive their one-time termination benefits or salary continuation, the Company is recognizing the termination benefits ratably over their future service periods.

The service periods began in December 2024 and all will end at various dates throughout 2025.

The following table shows the liability related to employee termination benefits as of March 31, 2025 (in thousands):

The following table shows the liability related to employee termination benefits as of June 30, 2025 (in thousands):

Employee Termination Benefits

2 unchanged sentences

Amounts paid or otherwise settled during the period ( 8,205 )

Accrued employee termination benefits as of March 31, 2025

Accrued employee termination benefits as of June 30, 2025

In total, the Company expects that it will incur approximately $ 15.0 million of employee termination benefit expense to implement the Reduction.

2 unchanged sentences

In accordance with ASC 420, the Company recognized these unavoidable contract costs when incurred for terminated contracts or at the cease-use date, as it relates to contract costs that continue to be incurred.

The following table shows the liability related to costs for ongoing contracts and contract termination costs as of March 31, 2025 (in thousands):

The following table shows the liability related to costs for ongoing contracts and contract termination costs as of June 30, 2025 (in thousands):

Contract Costs

2 unchanged sentences

Amounts paid or otherwise settled during the period ( 16,364 )

Accrued contract costs as of March 31, 2025

Accrued contract costs as of June 30, 2025

At June 30, 2025, $4.0 million of accrued contract costs was included in Other non-current liabilities on the Consolidated Balance Sheet.

These costs are subject to significant estimation based on the Company's expectation of the costs that will continue to be incurred on the contracts, as well as negotiation of contract changes and terminations with its vendors.

1 unchanged sentence

Impairment and Accelerated Depreciation Charges

In conjunction with the Discontinuation, the Company committed to a plan to actively sell specific assets within its asset group, primarily its laboratory and manufacturing equipment.

The laboratory and manufacturing equipment met all of the prescribed criteria required to classify it as held for sale.

The Company recorded $ 0.3 million of held for sale assets at their fair value at March 31, 2025, resulting in a $ 3.7 million impairment charge.

The fair value of the held for sale assets was determined based on the contractual sales price and determined to be a level 2 fair value measurement.

The assets held for sale are included in Prepaid expenses and other current assets on the Consolidated Balance Sheet as the Company expects to sell the assets within one year.

Additionally, the Company evaluated certain other leasehold improvements, software, and right of use assets and concluded that it would abandon the leasehold improvements, software and right of use asset in the second quarter of 2025, and as a result, the Company accelerated depreciation and rent expense resulting in $ 0.7 million and $ 4.0 million of incremental expense, respectively.

In total, the Company anticipates incurring $ 9.8 million in impairment charges related to the impairment of laboratory equipment and its related right of use asset in connection with the Discontinuation.

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the CODM or decision-making group in making decisions on how to allocate resources and assess performance.

In conjunction with the Discontinuation, the Company committed to a plan to actively sell specific assets within its asset group, primarily certain of its laboratory and manufacturing equipment.

At March 31, 2025, the laboratory and manufacturing equipment met all of the prescribed criteria required to classify it as held for sale.

The Company recorded $ 0.3 million of held for sale assets at their fair value at March 31, 2025, resulting in a $ 3.7 million impairment charge during the three months ended March 31, 2025.

The sale was completed in April 2025.

Additionally, the Company abandoned certain other leasehold improvements, software, and right of use assets in the second quarter of 2025, and as a result, the Company accelerated depreciation and rent expense and recorded the following in the condensed consolidated statements of operations (in thousands):

Three Months Ended

June 30, Six Months Ended

Accelerated depreciation related to leasehold improvements and software $ 1,072 $ 1,790

Charges related to termination of lease 731 4,758

Total $ 1,803 $ 6,548

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the Chief Operating Decision Maker (“CODM”) or decision-making group in making decisions on how to allocate resources and assess performance.

The Company’s CODM is its CEO.

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Collaboration and other research and development revenues $ 3,578 $ 513 $ 8,236 $ 1,649

7 unchanged sentences

Other expenses 3

1,787 3,172 7,785 6,665

General and administrative 2

4 unchanged sentences

Facility and other expenses 4

1,941 2,783 4,762 5,695

Total operating expenses 55,122 72,416 135,943 140,542

Operating loss ( 51,544 ) ( 71,903 ) ( 127,707 ) ( 138,893 )

Other income, net:

Other (expense) income, net:

Other (expense) income, net ( 1,758 ) ( 1 ) ( 2,183 ) 5

Interest related to sale of future revenues ( 2,020 ) — ( 4,236 ) —

Interest income, net 2,087 4,297 4,803 9,331

Total other income, net 75 5,041

Total other (expense) income, net ( 1,691 ) 4,296 ( 1,616 ) 9,336

Net loss $ ( 53,235 ) $ ( 67,607 ) $ ( 129,323 ) $ ( 129,557 )

1 For the three months ended March 31, 2025 and 2024 includes $ 39,243 and $ — of restructuring and impairment charges, respectively.

2 For the three months ended March 31, 2025 and 2024 includes $ 1,610 and $ — of restructuring and impairment charges, respectively.

1 The three and six months ended June 30, 2025 and 2024 include $ 24,830 and $ 64,075 and $- and $- of restructuring and impairment charges, respectively.

2 The three and six months ended June 30, 2025 and 2024 include $ 1,251 and $ 2,860 and $- and $- of restructuring and impairment charges, respectively.

3 Other expenses primarily consists of impairment charges, consultant fees and office expenses

4 Facility and other expenses primarily consists of rent expense, insurance premiums, depreciation expense, software licenses and office expenses

Subsequent Events

In 2023, the Company entered into a license and service agreement pursuant to which it leased manufacturing space for its continued research and development activities related to reni-cel.

The lease commenced April 1, 2024.

In April 2025, the Company modified the license and service agreement to terminate on April 30, 2025 with a final fixed payment of $ 3.7 million.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements