Company: ARWR
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038858
Chunk: 96

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 96
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,770 4,060 Total5,946 4,729 5,526 4,771 

NOTE 14. INCOME TAXES

The Company's estimated annual effective tax rate significantly fluctuates for fiscal 2025 with small changes to the Company’s estimated income. For the three months ended June 30, 2025, the Company has recorded a discrete income tax benefit of $0.4 million. The income tax provision for the three months ended June 30, 2024, resulted in no tax expense. For the nine months ended June 30, 2025, the Company has recorded a discrete income tax expense of $1.4 million, and for the nine months ended June 30, 2024, the Company has recorded a discrete income tax benefit of $3.3 million. Income tax expense for the three and nine months ended June 30, 2025 was based on actual year to date income recorded and statutory tax rates. 

The Company does not anticipate any changes in its unrecognized tax benefits over the next 12 months. Due to the presence of net operating loss carryforwards, all of the income tax years remain open for examination domestically. The Company has not been notified that it is under audit by the Internal Revenue Service or foreign taxing authorities; however, the Company has been notified of an income tax examination by the State of California. There are no other audits in any other jurisdictions. 

NOTE 15. SUBSEQUENT EVENTSVisirna

On August 1, 2025, Visirna Therapeutics HK Limited (“Visirna HK”), a wholly owned subsidiary of Visirna Therapeutics, Inc, a majority owned subsidiary of the Company, entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with Genzyme Corporation (“Sanofi”), a wholly owned subsidiary of Sanofi S.A., pursuant to which Visirna HK sold all of its assets and rights in investigational plozasiran to Sanofi, which included an assignment of Visirna HK’s rights (as successor by assignment from Visirna) to develop and commercialize investigational plozasiran in Greater China pursuant to that certain License Agreement by and between the Company and Visirna dated, April 25, 2022 (the “Visirna License Agreement”).  The Asset Purchase Agreement is scheduled to close during the second half of the 

25

year.In connection with the Asset Purchase Agreement, the Company consented to the