Company: ARWR
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001628280-25-024666
Chunk: 108

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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 months ended March 31, 2025 compared to the same periods of 2024. This increase was primarily due to property taxes charged to the laboratory and office facilities in Verona, Wisconsin, which completed their build out during the first quarter of fiscal 2024. 

Stock compensation expense, a non-cash expense, is based up the valuation of stock options and restricted stock units granted to employees. Stock compensation expense increased $0.4 million, or 5%, for the three months ended March 31, 2025, which was primarily due to an increase in R&D headcount. Stock compensation decreased $1.1 million, or 6%, for the six months ended March 31, 2025 compared to the same periods 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. These expenses increased $1.5 million, or 36% for the three months ended March 31, 2025 and $2.3 million, or 30%, for the six months ended March 31, 2025 compared to the same periods of 2024. The increase was primarily attributed to completion of the build out of facilities in Verona, Wisconsin, and the commencement of depreciation.

The Company anticipates these R&D expenses to continue to increase as its pipeline of candidates grows and progresses to later phase clinical trials, in addition to inflationary pressure on goods and services and the labor market. 

General & Administrative Expenses 

The following tables provide details of general and administrative expenses for the periods indicated: 

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(in thousands)Three Months Ended March 31, 2025% ofExpenseCategory Three Months Ended March 31, 2024% ofExpenseCategory Increase (Decrease)$% Salaries$7,857 28 %$7,088 28 %$769 11 %Professional, outside services, and other 10,815 37 %6,278 25 %4,537 72 %Facilities related1,082 4 %1,015 4 %67 7 %Total general & administrative expense, excluding non-cash expenses$19,754 69 %$14,381 57 %$5,373 37 %Stock compensation8,140 29 %10,263 41 %(2