Company: RCUS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001724521-25-000101
Chunk: 250

Company: Arcus Biosciences, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 250
---
, 2025 and December 31, 2024, we have provided a valuation allowance against U.S. federal and state deferred tax assets. We continue to evaluate the realizability of deferred tax assets and the related valuation allowance. If our assessment of the deferred tax assets or the corresponding valuation allowance were to change, we would record the related adjustment to income during the period in which we make the determination. We recognize interest and penalties associated with uncertain tax benefits as part of the income tax provision. To date, we have not recognized any interest and penalties, nor have we accrued for or made payments for interest and penalties. We have not been audited by the Internal Revenue Service, any state or foreign tax authority. We are subject to taxation in the U.S. and in Australia. Due to NOLs and research credit carryforwards, all of our tax years, from 2015 to 2024, remain open to U.S. federal and California state tax examinations. In addition, our fiscal years from 2020 to 2024 are open to examination in Australia.

Note 7. Net income (loss) per share

The computation of basic earnings per share ("EPS") is based on the weighted-average number of our common shares outstanding. The computation of diluted EPS is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which primarily include shares that may be issued under our stock option, restricted stock and performance unit award programs (collectively, dilutive securities), as determined by using the treasury stock method.The computations for basic and diluted EPS were as follows (in millions, except per-share data):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Net income (loss) (Numerator):Net income (loss)$— $(93)$(112)$(97)Weighted-average shares (Denominator):Outstanding106.1 91.1 102.3 88.6 Effect of dilutive securities0.4 — — — Weighted-average shares for diluted EPS106.5 91.1 102.3 88.6 Net income (loss) per share - Basic$— $(1.02)$(1.09)$(1.09)Net income (loss) per share - Diluted$— $(1.02)$(1.09)$(1.09)

14

The following table summarizes potentially dilutive securities excluded from the computation of