Company: ARWR
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001628280-25-024666
Chunk: 90

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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 Ended March 31,Six Months Ended March 31,2025202420252024(in thousands)Research and development$7,264 $7,097 $14,110 $15,413 General and administrative7,817 9,491 15,147 18,860 Total$15,081 $16,588 $29,257 $34,273 Stock Option AwardsThe following table presents a summary of the stock option activity for the six months ended March 31, 2025:SharesWeighted-AverageExercisePricePer ShareWeighted-AverageRemainingContractualTerm (Years)AggregateIntrinsicValueOutstanding at September 30, 20241,978,516$23.39 Granted—— Cancelled or expired(30,466)43.12 Exercised(422,333)7.67 Outstanding at March 31, 20251,525,717$27.35 3.7$3,831,887 Exercisable at March 31, 20251,525,717$27.35 3.7$3,831,887 

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The aggregate intrinsic values represent the amount by which the market price of the underlying stock exceeds the exercise price of the option. The total intrinsic value of the options exercised during the three months ended March 31, 2025 and 2024 was $3.7 million and $2.5 million, respectively. The total intrinsic value of the options exercised during the six months ended March 31, 2025 and 2024 was $4.6 million and $3.1 million, respectively.Stock-based compensation expense related to stock options outstanding for the three months ended March 31, 2025 and 2024, was $3.0 thousand and $0.6 million, respectively. Stock-based compensation expense related to stock options outstanding for the six months ended March 31, 2025 and 2024, was $0.1 million and $2.1 million, respectively.As of March 31, 2025, the pre-tax compensation expense for all outstanding unvested stock options is considered nominal. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable.