Company: ARWR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001628280-25-004634
Chunk: 30

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 additional allowances and the related increased lease payments. The Company has further concluded that these ATIAs have no effects on the classification of the lease.Madison, Wisconsin: The Company leases 107,000 square feet space located at 502 South Rosa Road for its office and laboratory facilities, which lease expires on September 30, 2031. The lease contains options to renew for two terms of five years. The Company is not reasonably certain that it will exercise this option and therefore it is not included in right-of-use assets and liabilities as of December 31, 2024.The components of lease assets and liabilities along with their classification on the Company’s consolidated balance sheets were as follows:Lease Assets and LiabilitiesClassificationDecember 31, 2024September 30, 2024(in thousands)Operating lease assetsRight-of-use assets$44,869 $45,255 Current operating lease liabilitiesLease liabilities6,560 6,342 Non-current operating lease liabilitiesLease liabilities, net of current portion109,296 111,027 

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Three Months Ended December 31,Lease CostClassification20242023(in thousands)Operating lease costResearch and development$2,811 $2,994 General and administrative expense493 476 Variable lease cost (1)Research and development985 779 General and administrative expense— — Total $4,289 $4,249 (1) Variable lease cost is primarily related to operating expenses associated with the Company’s operating leases.There was $0 short-term lease cost during the three months ended December 31, 2024 and 2023, respectively. The following table presents maturities of operating lease liabilities on an undiscounted basis as of December 31, 2024:YearAmounts(in thousands)2025 (remainder of fiscal year)$11,616 202615,799 202714,974 202813,619 202913,905 2030 and thereafter114,790 Total$184,703 Less imputed interest$(68,847)Total operating lease liabilities (includes current portion)$115,856 Supplemental cash flow and other information related to leases was as follows:Three Months Ended December 31,20242023Cash received for amounts included in the measurement of lease liabilities:Operating cash flows from operating leases$— $3,099 Right-of-use assets adjusted in exchange for new/amended operating lease liabilities$— $64 Cash paid for