Company: ARWR
Filing Date: 2025-11-25
Form Type: 10-K
Source: 0000879407-25-000029
Chunk: 150

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-11-25
Form: 10-K
Item: Item 7
Chunk 150
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5 compared to the same period of 2024. The increase was primarily due to an increase in headcount that has occurred as the Company has expanded its pipeline of candidates, in addition to annual salary increases.  

Facilities-related expense includes lease costs for the Company’s research and development facilities in San Diego, California and Madison and Verona, Wisconsin. These expenses increased $3.5 million, or 13%, for the year ended September 30, 2025 compared to the same period of 2024. The increase was primarily due to full-year expenses such as utilities and repair and maintenance charges associated with the new facilities in Verona, Wisconsin, which completed their build out during the first quarter of fiscal 2024. 

Stock compensation expense, a non-cash expense, is primarily based on the valuation of  restricted stock units granted to employees, which is based on the closing stock price on the grant date. Stock compensation expense decreased $1.0 million, or 3%, for the year ended September 30, 2025 compared to the same period of 2024. The decrease was primarily due to the cancellation of awards upon the departure of employees.

Depreciation and amortization expense, a non-cash expense, relates to depreciation on buildings, lab equipment and leasehold improvements. Depreciation and amortization expense increased $5.2 million, or 31% for the year ended September 30, 2025 compared to the same period of 2024. The increase was primarily attributable to completion of the build out of facilities in Verona, Wisconsin, and the commencement of depreciation.

68

General & Administrative Expenses

The following table provides details of general and administrative expenses for the periods indicated: 

(in thousands)Year EndedSeptember 30, 2025% ofExpenseCategory Year EndedSeptember 30, 2024% ofExpenseCategoryIncrease (Decrease) $ % Salaries$31,916 26 %$27,589 28 %$4,327 16 %Professional, outside services, and other53,589 42 %24,733 25 %28,856 117 %Facilities related5,625 5 %4,116 4 %1,509 37 %Total general & administrative expense, excluding non-cash expense$91,130 73 %$56,438 57 %$34,692 61 %Stock compensation30,785 25 %40,