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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Precision Biosciences Inc. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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We are exposed to market risks in the ordinary course of our business. These risks primarily include interest rate sensitivities. Our interest-earning assets consist of cash and cash equivalents, which are denominated in U.S. dollars. We had cash, cash equivalents and restricted cash of $112.4 million, or approximately 89% of our total assets, on June 30, 2026 and $137.2 million, or approximately 89% of our total assets, on December 31, 2025. Interest income earned was 1.9 million and $2.4 million for the six months ended June 30, 2026 and June 30, 2025, respectively. Our interest income is sensitive to changes in the general level of interest rates, primarily U.S. interest rates, however, we do not anticipate fluctuations in interest rates to have a material impact on our condensed financial statements. A hypothetical 10% change in interest rates would not have a material impact on the value of our cash and cash equivalents as of June 30, 2026.
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