PRECISION BIOSCIENCES INCDTILEarnings & Financial Report

Item 1. Financi al Statements. PRECISION BIOSCIENCES, INC.

B ALANCE SHEETS (In thousands, except share and per share amounts) December 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 85,899 $ 116,678 Accounts receivable 229 901 Marketable securities 413 — Prepaid expenses 6,441 5,977 Convertible note receivable — 11,897 Assets held for sale 169 487 Contract asset 1,469 — Other current assets 369 419 Total current assets 94,989 136,359 Restricted cash 22,569 — Property, equipment, and software—net 3,089 6,338 Intangible assets—net 622 400 Right-of-use assets—net 7,090 8,263 Investment in equity securities 3,206 3,206 Note receivable—net 4,602 4,990 Other assets 221 225 Total assets $ 136,388 $ 159,781 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 1,312 $ 2,968 Accrued compensation 5,182 4,978 Accrued research and development expenses 2,016 1,557 Deferred revenue 2,957 12,035 Loan payable—current portion — 22,412 Lease liabilities 1,320 1,133 Other current liabilities 989 2,391 Current liabilities of discontinued operations 1,204 2,513 Total current liabilities 14,980 49,987 Loan payable 22,321 — Deferred revenue 23,300 73,082 Lease liabilities 6,404 7,723 Warrant liability 2,796 — Contract liabilities 10,000 10,000 Other noncurrent liabilities 194 128 Total liabilities 79,995 140,920 Commitments and contingencies (Note 14) Stockholders’ equity: Preferred stock: $ 0.0001 par value— 10,000,000 shares authorized as of December 31, 2024 and December 31, 2023; no shares issued and outstanding as of December 31, 2024 and December 31, 2023 — — Common stock: $ 0.000005 par value— 200,000,000 shares authorized as of December 31, 2024 and December 31, 2023; 8,229,730 shares issued and 8,202,715 shares outstanding as of December 31, 2024; 4,191,053 shares issued and 4,164,038 shares outstanding as of December 31, 2023 1 1 Additional paid-in capital 539,808 509,443 Accumulated deficit ( 482,464 ) ( 489,631 ) Treasury stock ( 952 ) ( 952 ) Total stockholders’ equity 56,393 18,861 Total liabilities and stockholders’ equity $ 136,388 $ 159,781 See notes to financial statements F- 3 PRECISION BIOSCIENCES, INC.

STATEM ENTS OF OPERATIONS (In thousands, except share and per share amounts) For the Years Ended December 31, 2024 2023 Revenue $ 68,696 $ 48,727 Operating expenses Research and development 59,559 53,375 General and administrative 35,299 39,088 Total operating expenses 94,858 92,463 Operating loss ( 26,162 ) ( 43,736 ) Other income (expense): Loss from equity method investment ( 1,084 ) ( 4,931 ) Gain on changes in fair value 258 1,145 Gain on change in fair value of warrant liability 29,610 — Interest expense ( 1,782 ) ( 2,230 ) Interest income 6,763 7,686 Loss on disposal of assets ( 436 ) ( 461 ) Total other income 33,329 1,209 Income (loss) from continuing operations $ 7,167 $ ( 42,527 ) Loss from discontinued operations (including gain on disposal of $ 8,446 during the year ended December 31, 2023) — ( 18,792 ) Net income (loss) $ 7,167 $ ( 61,319 ) Net income (loss) per share Basic $ 1.05 $ ( 15.96 ) Diluted $ 1.04 $ ( 15.96 ) Weighted-average shares of common stock outstanding Basic 6,832,982 3,841,405 Diluted 6,883,911 3,841,405 See notes to financial statements F- 4 PRE CISION BIOSCIENCES, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (In thousands, except share amounts) Common Stock Additional Paid-In Accumulated Treasury Total Stockholders’ Shares Amount Capital Deficit Stock Equity Balance- December 31, 2022 3,725,689 1 $ 489,696 $ ( 428,312 ) $ ( 952 ) $ 60,433 Stock option exercises 3,196 — 31 — — 31 Issuance of common stock under employee stock purchase plan 18,101 — 370 — — 370 Share-based compensation expense — — 14,040 — — 14,040 Restricted stock units vested 46,893 — — — — — Net proceeds from issuance of common stock 397,174 — 5,306 — — 5,306 Net loss — — — ( 61,319 ) — ( 61,319 ) Balance- December 31, 2023 4,191,053 $ 1 $ 509,443 $ ( 489,631 ) $ ( 952 ) $ 18,861 Issuance of common stock under employee stock purchase plan 23,831 — 249 — — 249 Share-based compensation expense — — 12,604 — — 12,604 Proceeds from issuance of common stock and warrants through underwritten offering, net of issuance costs 2,500,000 — 4,610 — — 4,610 Proceeds from issuance of common stock to collaboration partners and licensees 97,360 — 905 — — 905 Proceeds from issuance of common stock through ATM facility, net of issuance cost 1,290,354 — 11,697 — — 11,697 Proceeds from issuance of common stock, net of issuance cost 25,000 — 300 — — 300 Restricted stock units vested 102,132 — — — — — Net Income — — — 7,167 — 7,167 Balance- December 31, 2024 8,229,730 $ 1 $ 539,808 $ ( 482,464 ) $ ( 952 ) $ 56,393 See notes to financial statements F- 5 PRECISION BIOSCIENCES, INC.

STATEMENTS OF CASH FLOWS (In thousands) For the Years Ended December 31, 2024 2023 Cash flows from operating activities: Net Income (loss) $ 7,167 $ ( 61,319 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 3,404 6,817 Share-based compensation 12,604 14,040 Loss on disposal of assets 436 563 Gain on disposal of business — ( 8,446 ) Non-cash interest expense 249 368 Amortization of right-of-use assets 1,173 1,438 Gain on changes in fair value ( 258 ) ( 1,145 ) Loss from equity method investment 1,084 4,931 Amortization of discount on note receivable ( 695 ) ( 515 ) Gain on change in fair value of warrant liability ( 29,610 ) — Impairment charges — 641 Changes in operating assets and liabilities: Prepaid expenses ( 464 ) 1,051 Marketable securities 1,990 — Convertible note receivable 9,750 — Accounts receivable 672 ( 181 ) Contract asset ( 1,469 ) — Other assets and other current assets ( 262 ) 1,752 Accounts payable ( 2,096 ) 1,508 Other liabilities and other current liabilities ( 2,128 ) ( 724 ) Deferred revenue ( 58,860 ) ( 43,947 ) Lease liabilities ( 1,132 ) ( 946 ) Net cash used in operating activities ( 58,445 ) ( 84,114 ) Cash flows from investing activities: Proceeds from disposal of business — 8,000 Purchases of property, equipment and software ( 250 ) ( 1,957 ) Purchases of intangibles assets ( 25 ) ( 321 ) Proceeds from sale of equipment 60 107 Net cash (used in) provided by investing activities ( 215 ) 5,829 Cash flows from financing activities: Proceeds from stock option exercises — 31 Proceeds from employee stock purchase plan 249 370 Proceeds from offering of common stock and warrants, net of issuance costs 49,333 4,986 Proceeds from offering of common stock to collaboration partners and licensees 905 — Repayment of revolving credit facility ( 22,505 ) — Borrowings from term loan debt facility, net of issuance costs paid to lender 22,468 — Net cash provided by financing activities 50,450 5,387 Net decrease in cash, cash equivalents and restricted cash ( 8,210 ) ( 72,898 ) Cash, cash equivalents, and restricted cash—beginning of period 116,678 189,576 Cash, cash equivalents, and restricted cash —end of period $ 108,468 $ 116,678 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 85,899 $ 116,678 Restricted cash $ 22,569 $ — Total of cash, cash equivalents and restricted cash $ 108,468 $ 116,678 Supplemental disclosures of noncash financing and investing activities: Property, equipment and software additions included in accounts payable, accrued expenses and other current liabilities $ 48 $ 14 Intangible asset additions included in accounts payable and accrued expenses and other current liabilities $ 250 $ — Cash paid for interest $ 1,738 $ 2,018 Unsettled at-the-market issuances of common stock included in other current assets $ — $ 320 See notes to financial statements F- 6 Precision BioSciences, Inc.

No tes to Financial Statements NOTE 1: DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Precision BioSciences, Inc. (the “Company”) was incorporated on January 26, 2006 under the laws of the State of Delaware and is based in Durham, North Carolina.

Since its inception, the Company has devoted substantially all of its efforts to research and development activities, recruiting skilled personnel, establishing its intellectual property portfolio and providing general and administrative support for these operations. The Company is subject to a number of risks similar to those of other companies conducting early-stage research and development of product candidates.

Principal among these risks are the Company’s dependence on key individuals and intellectual property, competition from other products and companies, and the technical risks associated with the successful research, development and clinical manufacturing of its product candidates.

The Company’s success is dependent upon its ability to continue to raise additional capital in order to fund ongoing research and development, obtain regulatory approval of its products, successfully commercialize its products, generate revenue, meet its obligations, and, ultimately, attain profitable operations.

Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Actual results could differ from those estimates.

Significant estimates include recording revenue for performance obligations recognized over time, determination of the fair value of share-based compensation grants, estimating services expended by third-party service providers used to recognize research and development expense and determination of the fair value of investments. Basis of Presentation These financial statements have been prepared in accordance with GAAP.

Additionally, the accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The accompanying financial statements have been recast for all periods presented to reflect the assets, liabilities and expenses related to discontinued operations (discussed below).

The accompanying financial statements are generally presented in conformity with the Company’s historical format. Reverse Stock Split On February 13, 2024, the Company amended its amended and restated certificate of incorporation in order to effect a 1-for- 30 reverse stock split of its outstanding shares of capital stock (the “Reverse Stock Split”).

As a result of the Reverse Stock Split, every 30 shares of the Company’s common stock issued or outstanding were automatically reclassified into one new share of common stock, subject to the treatment of fractional shares as described below, without any action on the part of the holders.

All historical share and per-share amounts reflected throughout the accompanying financial statements and other financial information in this Annual Report on Form 10-K have been retroactively adjusted to reflect the 2024 Reverse Stock Split as if the split occurred as of the earliest period presented.

The Reverse Stock Split did not affect the number of authorized shares of common stock or the par value of the common stock. No fractional shares were issued in connection with the Reverse Stock Split.

Stockholders who would otherwise have been entitled to receive fractional shares as a result of the Reverse Stock Split were entitled to a cash payment in lieu thereof at a price equal to the fraction to which the stockholder would otherwise be entitled multiplied by the closing sales price per share of the common stock (as adjusted to give effect to the Reverse Stock Split) on The Nasdaq Capital Market on February 13, 2024, the last trading day immediately preceding the effective time of the Reverse Stock Split.

F- 7 Summary of Significant Accounting Policies Cash and Cash Equivalents As of December 31, 2024 and December 31, 2023 , the Company held cash equivalents which are composed of money market funds.

Restricted Cash Restricted cash includes a cash security account with Banc of California pursuant to the 2024 Loan and Security Agreement (as defined in Note 12, Debt , below). The balance is classified as long-term on the Company’s balance sheets as the maturity date under the 2024 Loan and Security Agreement is June 30, 2027.

As of December 31, 2024 , the Company had a restricted cash balance of $ 22.6 million. There was no restricted cash as of December 31, 2023. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, and notes receivable.

All of the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The Company may maintain cash deposits in financial institutions in excess of government insured limits. The Company regularly invests excess cash deposits in money market funds and repurchase agreements.

The Company believes that the credit risk arising from the holdings of these financial instruments is mitigated by the fact that these securities are of short duration, government backed and of high credit rating. The Company has not experienced any losses on cash and cash equivalents to date.

Revenue from Prevail and TG Therapeutics accounted for 77 % and 12 % of revenue during the year ended December 31, 2024 , respectively. Revenue from Prevail and Novartis accounted for 62 % and 38 % of revenue during the year ended December 31, 2023, respectively. Novartis accounted for all of the Company’s deferred revenue as of December 31, 2024.

In addition, the Company currently holds a $ 10.0 million promissory note payable from Elo (defined below), which exposes the Company to potential losses in the event of default. Counterparty credit risk is monitored through periodic reviews of financial records. As of December 31, 2024 , the Company considers the risk of counterparty default to be minimal.

Property, Equipment and Software Property, equipment and software (“PP&E”) are stated at cost, net of depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets ranging from three to seven years.

Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset.

The depreciation and amortization periods for the Company’s significant PP&E categories are as follows: Laboratory equipment 5 to 7 years Furniture and fixtures and office equipment 3 to 5 years Leasehold improvements Lesser of remaining lease term or useful life Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements that extend the useful life of the asset are capitalized.

Intangible Assets Intangible assets primarily include in-licenses and capitalized patent costs. The Company capitalizes license fees paid to acquire access to proprietary technology if the technology is expected to have alternative future use in multiple research and development projects. The cost of licensed technology rights is amortized using the straight-line method over the estimated useful life of the technology.

If the access to use the technology rights is one year or less, the cost is recorded as a prepaid expense and amortized over the period identified in the agreement. Amortization expense for licensed technology and capitalized patent costs is included in research and development expenses within the accompanying statement of operations.

F- 8 Impairment Charges Long-lived assets, such as PP&E, intangible assets, and long-term prepaid assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

An impairment loss is assessed when future undiscounted cash flows are less than the assets’ carrying value and recognized when the carrying value of the asset exceeds fair value. Fair value is calculated by estimating the discounted future cash flows expected to be generated by the asset as well as other valuation techniques.

An impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset. Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk.

ASC 820, Fair Value Measurement , establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from our independent sources.

Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances.

The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used to value the assets and liabilities: • Level 1 - Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities • Level 2 - Inputs, other than quoted prices in active markets, that are observable either directly or indirectly • Level 3 - Unobservable inputs for which there is little or no market date, which require the Company to develop its own assumptions To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.