Company: RCUS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001724521-25-000063
Chunk: 328

Company: Arcus Biosciences, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 328
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ment 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 income/expense incurred under the effective interest method on our liability for sale of future royalties to BVF.

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Results of Operations

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

Three Months EndedMarch 31,Change 20252024Revenues:License and development services revenue$20 $135 (85)%Other collaboration revenue8 10 (20)%Total revenues28 145 (81)%Operating expenses:Research and development122 109 12 %General and administrative28 32 (13 %)Impairment of long-lived assets — 20 (100 %)Total operating expenses150 161 (7 %)Loss from operations(122)(16)*Non-operating income, net10 12 (17 %)Loss before income taxes(112)(4)*Income tax expense— — *Net loss$(112)$(4)*

*Not meaningful

Total Revenues

The decrease in Total revenues for the three months ended March 31, 2025 was primarily driven by the cumulative catch-up from license and development services revenue of $107 million in the prior year as a result of the Third Gilead Collaboration Agreement Amendment based on the updated transaction price and measure of progress for the partially satisfied performance obligations.

See Note 5, Revenues, to our Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion of the amount and timing of revenues recognized from our license and collaboration agreements.

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Research and Development Expenses

We group all of our R&D activities and the related expenditures into categories as described below:

CategoryDescriptionProgram Level ExpensesKey ClinicalTrialsLate-stage development programsR&D expenses incurred related to a Phase 3 clinical program intended to result in registration of a new product. This includes all unallocated program-level expense not directly attributable to a specific clinical trial once a molecule enters into one or more Phase 3 clinical trials.domvanalimabzimberelimabquemliclustat**PACIFIC-8STAR-121STAR-221PRISM-1ARC-10*Early-stage development