Precision BioSciences Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Precision BioSciences Inc. has filed its 2023 10-K report, outlining financial activities and corporate agreements.</b>

AI Summary

PRECISION BIOSCIENCES INC (DTIL) filed a Annual Report (10-K) with the SEC on March 27, 2024. Precision BioSciences Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing details various financial instruments and agreements, including revolving credit facilities and stock purchase agreements. Key dates mentioned relate to incentive award plans and research and development arrangements. The company's business address is located at 302 East Pettigrew Street, Suite A-100, Durham, NC 27701. The SIC code for Precision BioSciences Inc. is 2836, indicating Biological Products (No Diagnostic Substances).

Why It Matters

For investors and stakeholders tracking PRECISION BIOSCIENCES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of the company's financial health, operational agreements, and strategic partnerships for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's performance, risks, and future outlook based on detailed financial disclosures and corporate actions.

Risk Assessment

Risk Level: medium — PRECISION BIOSCIENCES INC shows moderate risk based on this filing. The company's financial disclosures are extensive, covering various agreements and financial instruments, suggesting a complex operational and financial structure that warrants careful review.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Precision BioSciences Inc.'s financial position and strategic direction.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-03-27 — Filing Date (FILED AS OF DATE)
• 2836 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• DE — State of Incorporation (STATE OF INCORPORATION)

Key Players & Entities

• PRECISION BIOSCIENCES INC (company) — COMPANY CONFORMED NAME
• DTIL (company) — Ticker Symbol
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240327 (date) — FILED AS OF DATE
• Novartis (company) — Mentioned in relation to financial data
• Prevail Therapeutics Inc (company) — Mentioned in relation to Stock Purchase Agreement
• Imugene (company) — Mentioned in relation to financial data
• Tg License (company) — Mentioned in relation to Research and Development Arrangement

FAQ

Industry Context

Precision BioSciences Inc. operates in the biotechnology sector, focusing on biological products.

Regulatory Implications

The filing is a standard 10-K report required by the Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow.
2. Review the risk factors section for potential challenges and uncertainties.
3. Examine any disclosed executive compensation details.

Year-Over-Year Comparison

This is the initial filing data extracted, no prior filing data is available for comparison.

Key Financial Figures

• $0.000005 — ch registered Common Stock, par value $0.000005 per share DTIL The Nasdaq Capital M

Filing Documents

• dtil-20231231.htm (10-K) — 3114KB
• dtil-ex4_6.htm (EX-4.6) — 23KB
• dtil-ex10_2.htm (EX-10.2) — 839KB
• dtil-ex10_12.htm (EX-10.12) — 1136KB
• dtil-ex21_1.htm (EX-21.1) — 2KB
• dtil-ex23_1.htm (EX-23.1) — 2KB
• dtil-ex31_1.htm (EX-31.1) — 15KB
• dtil-ex31_2.htm (EX-31.2) — 15KB
• dtil-ex32_1.htm (EX-32.1) — 9KB
• dtil-ex32_2.htm (EX-32.2) — 9KB
• dtil-ex97.htm (EX-97) — 40KB
• img96276807_0.jpg (GRAPHIC) — 33KB
• img96276807_1.jpg (GRAPHIC) — 78KB
• img96276807_2.jpg (GRAPHIC) — 54KB
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• img96276807_9.jpg (GRAPHIC) — 22KB
• img96276807_10.jpg (GRAPHIC) — 19KB
• img96276807_11.jpg (GRAPHIC) — 37KB
• img96276807_12.jpg (GRAPHIC) — 39KB
• img98299032_0.jpg (GRAPHIC) — 28KB
• 0000950170-24-036817.txt (&nbsp;) — 15848KB
• dtil-20231231.xsd (EX-101.SCH) — 1698KB
• dtil-20231231_htm.xml (XML) — 1988KB

Forward-Looking Statements

Forward-Looking Statements 3 Risk Factor Summary 6 PART I Item 1.

Business

Business 7 Item 1A.

Risk Factors

Risk Factors 36 Item 1B. Unresolved Staff Comments 87 Item 1C. Cybersecurity Item 2.

Properties

Properties 88 Item 3.

Legal Proceedings

Legal Proceedings 88 Item 4. Mine Safety Disclosures 88 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 89 Item 6. [Reserved] 89 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 90 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 106 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 106 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 106 Item 9A.

Controls and Procedures

Controls and Procedures 106 Item 9B. Other Information 107 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 107 PART III Item 10. Directors, Executive Officers and Corporate Governance 108 Item 11.

Executive Compensation

Executive Compensation 109 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 109 Item 13. Certain Relationships and Related Transactions, and Director Independence 109 Item 14. Principal Accounting Fees and Services 109 PART IV Item 15. Exhibits and Financial Statement Schedules 110 Item 16. Form 10-K Summary 113

Signatures

Signatures 114 2

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of present and historical facts contained in this Annual Report on Form 10-K, including, without limitation, statements regarding our future results of operations and financial position, business strategy and approach, including related results, prospective products, use and development of licensed products, planned preclinical studies and clinical trials, or discontinuance thereof, the status and results of our preclinical studies, expected release of interim data, expectations regarding the use and effects of ARCUS, including in connection with in vivo genome editing, collaborations and potential new partnerships or alternative opportunities for our product candidates, potential new application filings and regulatory approvals, research and development costs, timing, expected results and likelihood of success, as well as plans and objectives of management for future operations may be forward-looking statements. Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as "aim," "may," "will," "should," "expect," "exploring," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential," "seeks," or "continue" or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance, or achievements, and one should avoid placing undue re

B usiness

Item 1. B usiness. We are an advanced gene editing company utilizing our novel proprietary ARCUS platform to develop in vivo gene editing therapies for sophisticated gene edits, including gene elimination, insertion, and excision. ARCUS is the only gene editor derived purely from a protein, called a homing endonuclease, that evolved in nature to safely edit a genome and add function. ARCUS is particularly efficient at generating defined outcomes due to predominant repair using homology directed repair ( " HDR " ) as opposed to non-homologous end joining ( "NHEJ" ). Overview of Genome Editing DNA carries the genetic instructions for all basic functions of a living cell. These instructions are encoded in four different molecules, called bases, which are strung together in specific sequences to form genes. Each gene is responsible for a specific function in a cell, and the complete set of genes in a cell, which can consist of tens of thousands of genes and billions of individual bases, is known as a genome. The complete genome sequence has been determined for many organisms, including humans. This allows scientists to identify specific genes and determine how their unique sequences contribute to a particular cellular function. Studying variations in gene sequences further informs an understanding of why a cell behaves a certain way, which can greatly enhance understanding of what causes and how to treat aberrations that leads to disease. Genome editing is a biotechnology process that removes, inserts or repairs a portion of DNA at a specific location in a cell's genome. Early applications of genome editing focused on advancing genetic research. As genome editing technologies have advanced, their application is moving beyond understanding disease to treating or preventing disease by editing DNA. Genome editing is accomplished by delivering a DNA cutting enzyme, called an endonuclease, to a targeted segment of genetic code. There are several genome editing tech

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View this 10-K filing on SEC EDGAR