Company: RCUS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001724521-25-000101
Chunk: 229

Company: Arcus Biosciences, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 229
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 expenses to decline commencing in the fourth quarter 2025 as costs related to the domvanalimab Phase 3 development program decrease significantly.

General and Administrative Expenses

The decrease in G&A expenses for the three months ended June 30, 2025 was primarily driven by a decrease in compensation and personnel costs driven by a $3 million decrease in non-cash stock-based compensation, partially offset by increased costs recognized in the quarter in connection with the Gilead Agreement.

The decrease in G&A expenses for the six months ended June 30, 2025 was primarily driven by costs recognized in the prior year in connection with the Third Gilead Agreement Amendment, as well as a decrease in compensation and personnel costs driven by a $5 million decrease in non-cash stock-based compensation.

Impairment of Long-Lived Assets

The impairment expense for the six months ended June 30, 2024 was due to our 2024 evaluation and sublease of a portion of our office space, resulting in an impairment charge of $20 million.

Non-Operating Income, net

The decrease in Non-operating income, net for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, was primarily due to lower investment yields and lower average portfolio balances, and the interest expense on our long-term debt agreement which we entered into in the third quarter 2024.

The decrease in Non-operating income, net for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, was primarily due to lower investment yields and the interest expense on our long-term debt agreement which we entered into in the third quarter 2024.

Income Tax Expense

There was no Income tax expense for the three and six months ended June 30, 2025 or 2024 due to forecasted full year net operating losses.

The One Big Beautiful Bill Act ("OBBBA") was enacted on July 4, 2025. The OBBBA contains several changes to corporate taxation, including permanent repeal of the requirement to capitalize domestic research and experimental expenditures for federal income tax purposes for taxable years beginning after December 31, 2024. The OBBBA is not currently expected to materially impact the Company’s effective tax rate or cash flows in the current fiscal year.

Liquidity and Capital Resources 

Our cash and investments are held in a variety of interest-bearing instruments, including money market funds,