Company: ATRA
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0000950170-25-035507
Chunk: 190

Company: Atara Biotherapeutics, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 190
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 as a critical audit matter. Given the judgments necessary to determine the accounting literature to apply to a commercialization agreement, the method to estimate and measure the progress toward the completion of the performance obligations and the estimated contractual term over which the performance obligations would be completed, auditing such judgments and estimates required extensive audit effort due to the complexity of the commercialization agreements and the high degree of auditor judgment applied when performing audit procedures and evaluating the results of those procedures. 

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to determining the accounting literature to apply to the agreements, assessing management's method for measuring progress and evaluating management’s estimation of the contract term over which the performance obligations will be completed included the following, among others: 

•We reviewed and obtained an understanding of the Company’s revenue generating agreements and related transactions during and at the end of the year via review of internal and external presentations, news and publications, and discussions with management. 

•We evaluated the Company’s conclusions related to the accounting for contract modifications. 

•We evaluated management’s determination that the agreements are within the scope of ASC 606 - Revenue from Contracts with Customers. 

•We evaluated management's determination of the contractual term and the appropriateness of management's method to measure its progress over that term. 

•We evaluated the assumptions used in the estimates of total costs and the estimated measure of progress for recognizing revenues by: 

oPerforming corroborating inquiries with the Company's project and business development managers, and comparing the assumptions used in the estimates to management's work plans, cost estimates and costs reported to date, and material rights allocated, accumulated and earned. 

oComparing costs incurred for activities completed to date to the costs forecasted for those activities.

oComparing material rights accumulated and earned for activities completed to date to the fulfilment of performance obligations forecasted for those activities. 

Testing the mathematical accuracy of management’s revenue and current and long-term deferred revenue balances based on the estimated revenue to be recognized over time.

/s/ DELOITTE & TOUCHE LLP

San Francisco, California 

March 7, 2025

We have served as the Company’s auditor since 2013.

98

Atara Biotherapeutics, Inc. 

Consolidated Balance Sheets

(In thousands, except per share amounts)

    December 31,

    December 31,

    2024

    2023

    Assets

    Current assets:

    Cash and cash equivalents
     
    $
    25,030