Company: ATRA
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0000950170-25-035507
Chunk: 220

Company: Atara Biotherapeutics, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 220
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 future revenues, net of transaction costs of $0.4 million, and is amortized using the effective interest method over the life of the arrangement. To determine the amortization of the recorded liability, we are required to estimate the total amount of future payments to be received by HCRx. The sum of these amounts less the $31.0 million proceeds we received will be recorded as interest expense over the life of the HCRx Agreement. We estimate the effective interest rate used to record non-cash interest expense under the HCRx Agreement based on the estimate of future royalty payments to be received by HCRx. As of December 31, 2024, the annual effective interest rate was approximately 10%. Over the life of the arrangement, the actual effective interest rate will be affected by the amount and timing of the actual and forecasted royalty and milestone payments to HCRx. At each reporting date, we reassess our estimate of the timing and amounts of future payments made to HCRx, and prospectively adjust the effective interest rate and amortization of the liability as necessary. 

116

The following table presents the changes in the liability related to the sale of future revenues under the HCRx Agreement for the year ended December 31, 2024: 

        (in thousands)

        Liability related to sale of future revenues as of December 31, 2023
         
        $
        35,076

        Accretion of interest expense on liability related to sale of future revenues

        4,109

        Amortization of debt discount and debt issuance costs

        67

        Repayment of the liability

        (246
        )

        Liability related to sale of future revenues as of December 31, 2024

        39,006

        Less: current portion classified within other accrued liabilities

        (382
        )

        Long-term liability related to sale of future revenues
         
        $
        38,624

7.LeasesIn November 2018, we entered into a lease agreement for office space in Thousand Oaks, California, that expires in February 2026 and for which we have the option to extend the lease for an additional period of five years after the initial term. In February 2025, we moved our headquarters to Atara Research Center (ARC), our existing office, lab, and warehouse space in Thousand Oaks, California. In March 2021, we entered into a lease agreement for the 33,659 square