Company: ATRA
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0000950170-25-035507
Chunk: 270

Company: Atara Biotherapeutics, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 7
Chunk 270
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 ASC 470, we amortize the liability and recognize interest expense related to the sale of future revenues using the effective interest rate method over the estimated life of the underlying agreement. The liability and related interest expense are based on our current estimate of expected future payments over the life of the arrangement. We re-assess the amount and timing of expected payments each reporting period using a combination of internal projections and forecasts from external resources and record interest expense on the carrying value of the liability using the imputed effective interest rate. To the extent our estimates of future payments are greater or less than previous estimates or the estimated timing of such payments is materially different than previous estimates, this could impact the amount of interest expense we record each period as well as the amount and classification of the liability. We will account for any such changes by adjusting the effective interest rate on a prospective basis. The assumptions used in determining the expected repayment term of the liability and amortization period requires that we make estimates that could impact the effective interest rate, short-term and long-term classification of the liability and the period over which the liability will be amortized. 

Results of Operations

Comparison of the Years Ended December 31, 2024 and 2023

Revenues

Revenue consisted of the following in the periods presented: 

    Year ended December 31,

    2024

    2023

    Increase (Decrease)

    (in thousands)

    Commercialization revenue
     
    $
    128,940

    $
    7,886

    $
    121,054

    License and collaboration revenues

    —

    687

    (687
    )

    Total revenue
     
    $
    128,940

    $
    8,573

    $
    120,367

Commercialization revenues were $128.9 million in 2024 as compared to $7.9 million in 2023. The increase in 2024 was due to revenue recognized as a result of the additional performance obligations identified pursuant to the A&R Commercialization Agreement, including, but not limited to, the $46.7 million in fees related to transition plan activities for the year ended December 31, 2024, and the acceleration of the recognition period of the existing performance obligation related to the Initial Territory from the Pierre Fabre Commercialization Agreement.

Cost of commercialization revenue

Cost of commercialization revenue consisted of the following in the periods presented:

    Year ended December 31,

    2024