Company: RCUS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001724521-25-000101
Chunk: 253

Company: Arcus Biosciences, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 253
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rued interest receivable5 5 Total prepaid expenses and other current assets$20 $18 Other Current LiabilitiesOther current liabilities consisted of the following (in millions):June 30, 2025December 31, 2024Accrued research and development$61 $65 Accrued personnel expenses21 31 Current portion of lease liabilities12 12 Other16 15 Total other current liabilities$110 $123 

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Note 11. Long-term debt

The following table summarizes our borrowings (in millions):June 30, 2025December 31, 2024Long-term debt, non-current (Contractual maturity 2029)$100 $50 Unamortized discounts and issuance costs(3)(2)Total long-term debt$97 $48 On August 27, 2024, we and Hercules Capital, Inc. ("Hercules") entered into a loan and security agreement (the "Hercules Agreement"), under which Hercules agreed to lend us up to $250 million in term loans in various tranches subject to minimum draw requirements for each tranche. Under the terms of this agreement, $50 million was drawn at closing and $50 million was drawn in the second quarter 2025, with an additional $50 million committed and fully available at our sole option in minimum increments of $25 million. A second tranche of $100 million will be available subject to future approval by Hercules.The term loans have an interest only period for the first 48 months from the agreement date and bear cash interest at a rate equal to the greater of (i) 10.45% or (ii) the prime rate plus 1.95%. The agreement allows us to defer up to 2.0% of the cash interest as payment-in-kind interest which is added to the principal at a 1.10 multiple. Effective July 1, 2025, we have elected the maximum payment-in-kind deferral.The aggregate future minimum payments due under the Hercules Agreement, including principal payments, payment-in-kind interest incurred to date, and the end of term charge, are as follows (in millions):Maturity DateAmount2028$30 202978 Total payments$108 

During the three and six months ended June 30, 2025, we recognized $1 million and $3 million of interest expense. The effective interest rate of the debt, including payment-in-kind