Company: RCUS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001724521-25-000101
Chunk: 45

Company: Arcus Biosciences, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 3
Chunk 45
---
 complying with complex and changing foreign regulatory, tax, accounting and legal requirements; 

•different medical practices and customs in foreign countries affecting acceptance in the marketplace; 

•import or export licensing requirements; 

•longer accounts receivable collection times; 

•longer lead times for shipping; 

•language barriers for technical training; 

•reduced protection of intellectual property rights in some foreign countries; 

•the existence of additional potentially relevant third-party intellectual property rights; 

•foreign currency exchange rate fluctuations; and 

•the interpretation of contractual provisions governed by foreign laws in the event of a contract dispute. 

Foreign sales of our investigational products could also be adversely affected by the imposition of governmental controls, political and economic instability, trade restrictions and changes in tariffs. 

We or the third parties upon which we depend may be adversely affected by earthquakes, fires or other natural disasters. 

Our headquarters and main research facility are located in the San Francisco Bay Area, which in the past has experienced severe earthquakes and fires. In addition, fires and other natural disasters may increase in frequency and severity over time due to climate change. If these earthquakes, fires, other natural disasters, terrorism and similar unforeseen events beyond our control were to prevent us from using all or a significant portion of our headquarters or research facility, it may be difficult or, in certain cases, impossible for us to continue our business for a substantial period of time. We do not have a disaster recovery or business continuity plan in place and may incur substantial expenses as a result of the absence or limited nature of our internal or third-party service provider disaster recovery and business continuity plans, which, particularly when taken together with our lack of earthquake insurance, could have a material 

54

adverse effect on our business. Furthermore, integral parties in our supply chain are operating from single sites, increasing their vulnerability to natural disasters or other sudden, unforeseen and severe adverse events. If such an event were to affect our supply chain, it could have a material adverse effect on our ability to conduct our clinical trials, our development plans and business. 

Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited. 

We have incurred substantial losses during our history and our ability to generate profits in the future is uncertain. Unused NOL carryforwards the tax year ended December 31, 2017 and prior tax years will carry forward to offset future taxable income, if any, until such unused NOLs expire. Unused NOLs generated after December 31,