Company: ARWR
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001628280-25-024666
Chunk: 54

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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Effect of dilutive securities1,121 — 1,206 — Weighted-average diluted shares outstanding (1)134,484 123,285 130,265 115,307 Basic net income (loss) per share$2.78 $(1.02)$1.53 $(2.24)Diluted net income (loss) per share$2.75 $(1.02)$1.52 $(2.24)(1) Includes shares of common stock into which the Avoro Pre-Funded Warrants may be exercised. See Note 6.The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net income (loss) per share because to include them would be anti-dilutive.Three Months Ended March 31,Six Months Ended March 31,2025202420252024(in thousands)Options760 595 750 657 Restricted stock units5,289 3,411 4,567 3,931 Total6,049 4,006 5,317 4,588 

NOTE 14. INCOME TAXES

The Company's estimated annual effective tax rate significantly fluctuates for fiscal year 2025 with small changes to the Company’s estimated income. For the three months ended March 31, 2025, the Company has recorded a discrete income tax expense of $1.8 million. The income tax provision for the three months ended March 31, 2024, resulted in no tax expense. For the six months ended March 31, 2025, the Company has recorded a discrete income tax expense of $1.9 million and for the six months ended March 31, 2024, the Company has recorded a discrete income tax benefit of $3.3 million. Income tax expense for the three and six months ended March 31, 2025 was based on actual year to date income recorded and statutory tax rates. 

The Company does not anticipate any changes in its unrecognized tax benefits over the next 12 months. Due to the presence of net operating loss carryforwards, all of the income tax years remain open for examination domestically. The Company has not been notified that it is under audit by the Internal Revenue Service or foreign taxing authorities; however, the Company has been notified of an income tax examination by the state of California. There are no other audits in any other jurisdictions. 

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