Company: RCUS
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001724521-25-000040
Chunk: 142

Company: Arcus Biosciences, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 142
---
 compensation for personnel in executive, finance, human resources, information technology, business and corporate development, and other administrative functions. Shared facility expenses are allocated to functional groups proportionally based on usage. Our G&A expenses also include professional fees for legal, consulting, and accounting services, rent and other facilities costs, fixed asset depreciation, and other general operating expenses not otherwise classified as R&D expenses. We do not receive significant reimbursements of these costs through our collaboration with Gilead.

We anticipate that our G&A expenses will increase during the next few years as we support our growing R&D activities, including due to staff expansion, and other costs associated with increased infrastructure needs.

Impairment of Long-Lived Assets

Impairment charges consist of impairment of right-of-use assets resulting from updated plans in the first quarter 2024 for a portion of our office space.

Non-Operating Income, net

Non-operating income, net consists primarily of interest earned on our investments in fixed-income marketable securities, interest expense on our loan financing with Hercules, and non-cash interest expense incurred under the effective interest method on our liability for sale of future royalties to BVF.

64

Results of Operations

The following table summarizes our results of operations (in millions):

Year EndedDecember 31,2024Change Year EndedDecember 31,2023Change Year EndedDecember 31,2022Revenues:License and development service revenue$222 178 %$80 8 %$74 Other collaboration revenue36 (3)%37 (3)%38 Total revenues258 121 %117 4 %112 Operating expenses:Research and development448 32 %340 18 %288 General and administrative120 3 %117 13 %104 Impairment of long-lived assets20 *— *— Total operating expenses588 29 %457 17 %392 Loss from operations(330)(3)%(340)21 %(280)Non-operating income, net48 23 %39 179 %14 Loss before income taxes(282)(6)%(301)13 %(266)Income tax expense(1)(83)%(6)*(1)Net loss$(283)(8)%$(307)15 %$(267)

*Not meaningful

Total Revenues

The increase in Total revenues for 2024 as compared to 2023 was primarily driven by increased revenues from license and development services due to a cumulative